Rolta India Limited has informed the Exchange about Corporate Insolvency Resolution Process
Awaiting price reaction for this filing.
Rolta India Limited has informed the stock exchange that a Corporate Insolvency Resolution Process has been initiated against the company under the Insolvency and Bankruptcy Code (IBC). This typically means the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by a creditor or the company itself. As part of the process, an Insolvency Resolution Professional (IRP) is likely to take over the management and board of the company. Existing management's powers are generally suspended once the moratorium is in effect.
This is extremely negative for shareholders — equity holders are the last in the priority list for repayments, and in most CIRP cases, existing shares are either diluted heavily or rendered worthless. The stock is likely to face sharp selling pressure and high volatility.