Salient Features of Resolution Plan
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Hyderabad Bench has approved the Resolution Plan for Taaza International Limited under Section 31 of the Insolvency and Bankruptcy Code. The total financial outlay is Rs 9.10 crore, with Rs 3.64 crore to be paid upfront within 30 days and the remaining Rs 5.46 crore within 60 days. Keto Motors Private Limited will be merged into Taaza via a scheme of arrangement at a swap ratio of 3 equity shares of Taaza for every 2 shares of Keto Motors, resulting in allotment of about 5.60 crore new shares. Existing promoter shareholding will be fully cancelled, and 95% of public shareholding will be cancelled, with both groups receiving Rs 3.70 per share as payout and public shareholders getting 1 new share for every 20 held. The company will be renamed Keto Motors Limited and will pivot its main business to designing, manufacturing, and trading in electric and automotive vehicles.
Existing public shareholders will suffer a near-total wipeout of value — losing 95% of their shares for Rs 3.70 per share plus minimal new equity (1 share for every 20). The listed entity will effectively become Keto Motors in all but name, with new promoters (Keto Motors shareholders) gaining control. Short-term sentiment is likely negative for legacy holders, but the stock may see speculative interest on revival hopes tied to the EV/automotive pivot.