Outcome of the meeting of Board of Directors of ALPS Industries Limited (the 'Company') intimating the businesses considered pursuant to the implementation of Resolution Plan as approved ....
Awaiting price reaction for this filing.
Alps Industries' Board has approved steps to implement the Resolution Plan sanctioned by the NCLT Prayagraj (order dated November 4, 2025, plan dated February 12, 2025). The equity share capital will first be reduced by 99% — the face value drops from Rs. 10 to Rs. 0.10 per share — and then consolidated at a 1:10 ratio, where 10 shares of Rs. 0.10 will merge into 1 share of Rs. 1. Separately, the company will issue 1 crore (1,00,00,000) Category 'E' 0.01% Non-cumulative Redeemable Preference Shares at Rs. 1 face value with a Rs. 603 premium, aggregating Rs. 604 crore, to EARCL (likely Edelweiss Asset Reconstruction Company), redeemable over 20 years. Existing preference share capital is being cancelled as part of the same restructuring. The changes flow directly from the IBC resolution process and are required to give effect to the plan.
Existing equity shareholders face significant dilution and value erosion as the resolution plan restructures the capital base to accommodate financial creditors (via EARCL's Rs. 604 crore preference share infusion). The stock may see sharp price adjustments when the consolidation and face value changes take effect, though this is a technical restructuring rather than operational news. Long-term direction depends on the company's revival under the new capital structure.