Intimation of Order passed by Hon'ble NCLT for further issue of Unlisted Preference Shares.
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Prima Industries Ltd has received an NCLT order dated 21st January 2026 allowing it to issue 51,97,403 fresh 10% Non-Convertible Cumulative Redeemable Preference Shares (NCRPS) of Rs.10 each to its sole preference shareholder, Ayyappa Roller Flour Mills Limited, for a 20-year term (24.07.2022 to 23.07.2042). This effectively rolls over Rs.5.19 crore of unredeemed preference shares that were due for redemption back in July 2022, which the company couldn't redeem as it had no profits. The total settlement including arrears of dividend of Rs.3.12 crore comes to about Rs.8.32 crore. The board and shareholders had already approved this in 2024, and the company has also paid a Rs.2.5 lakh penalty for the earlier non-compliance with Section 55.
This is largely a procedural resolution of a longstanding compliance issue — existing preference shares are being replaced with fresh ones of the same terms, meaning no real change for equity shareholders. The 20-year extension signals that the company lacks profits to redeem preference shares, which is a mild negative signal about its earnings capacity, though the structure preserves the status quo for equity holders.