Reduction of Shares held by public pursuant to NCLT order
Awaiting price reaction for this filing.
Following an NCLT order, the board approved cancellation of 14,88,927 promoter equity shares and a massive reduction of public-held shares from 1,09,61,073 to just 6,57,429 (allotted in the ratio of 6 new shares for every 100 held, with the rest cancelled). Post this restructuring, promoters hold 0%, public shareholders retain only about 5.19%, and a proposed Implementing Entity will hold around 94.81% of equity. The board also approved selling land and building to a related party (M/s. Buildify Terra Firma LLP), authorised borrowings up to Rs. 50 crore, and permitted investments up to Rs. 50 crore, all subject to shareholder approval via postal ballot.
Existing public shareholders face a near-total wipeout — losing roughly 94% of their shareholding with no compensation mentioned. The company has effectively been taken over by a new Implementing Entity under an insolvency resolution plan, meaning retail investors are likely to see their holding value largely extinguished and should treat the stock with extreme caution.