Outcome of Board Meeting held on 18th August, 2025
Awaiting price reaction for this filing.
J.R. Foods Limited has implemented the NCLT Chennai Bench order dated 24th July 2025, which has effectively handed control of the company to the promoters of Datacipher Solutions Private Limited. The board approved cancellation of 100% of the existing promoter shareholding and a 9-out-of-10 share cancellation for public shareholders, meaning retail investors now retain just 1 equity share of ₹10 for every 10 they previously held, with no cash compensation. The company allotted 72,80,912 fresh equity shares of ₹10 each to the new resolution applicant group led by Mr. Amarandhar Reddy Kothha. The board was fully reconstituted – Mr. Amarandhar Reddy Kothha was appointed as Managing Director for 5 years, Mr. Rajesh Kumar Mallour as Whole-time Director & CFO, and Mrs. Bhargavi Medisetty as Independent Director, while old directors Mr. Kothari Dinesh, Mr. Gopi, and Mrs. Kamala ceased. A record date of 30th August 2025 was fixed for the share capital reduction, and the company's focus has shifted to IT, networking, and cyber security businesses with a new corporate office in Hyderabad.
This is a deeply negative event for existing public shareholders of J.R. Foods – they will lose 90% of their shareholding with no cash compensation, and the company's business direction is changing from food to IT/cybersecurity under entirely new management. The stock is likely to see extreme volatility; only investors who knowingly participate in the new Datacipher-led business will hold value going forward.