Related Party Transactions
Awaiting price reaction for this filing.
C & C Constructions' Board has approved a ₹50 Crore secured Inter-Corporate Deposit (ICD) from Ceigall India Limited, to be used for repaying an existing ₹50 Crore ICD previously taken from Ceigall Infra Projects Pvt Ltd (a Ceigall subsidiary). The funding is part of the company's revival plan, with R.K. Constructions' NCLT application under Section 60(5) of the Insolvency and Bankruptcy Code still in progress for reliefs and concessions. Once NCLT approval comes through, Ceigall India Limited will become the holding company, initially holding up to 94% of C & C Constructions, later reducing to 75%, leaving existing shareholders with about 5%. The company has reaffirmed its focus on the core Energy EPC business, particularly Transmission & Distribution (T&D) EPC. Security for the new ICD is provided through deposit of title deeds of property.
This represents a significant restructuring moment — while the new funding provides working capital relief and signals a potential turnaround, existing shareholders face substantial equity dilution as Ceigall India Limited takes majority control. The stock is likely to see sentiment pressure due to the near-total change in ownership structure, though long-term prospects hinge on the success of the revival plan and revival of the EPC business.