Salient features of the approved order by NCLT
Awaiting price reaction for this filing.
The NCLT Chennai approved the insolvency resolution plan for J.R. Foods Limited on July 24, 2025, with Datacipher Education Services Private Limited as the Successful Resolution Applicant (SRA). Under the approved plan, all existing promoter shares (~51.80%) will be cancelled and public shareholders will lose 9 out of every 10 shares held, retaining just 4,57,921 shares. The company will be renamed to Datacipher Limited, shift its registered office from Puducherry to Hyderabad (Telangana), and merge with Datacipher Solutions Private Limited. Post-restructuring, the SRA and Datacipher Solutions shareholders will own about 94.56% combined, existing public shareholders only 0.33%, and strategic investors 5.11%, with total fresh equity issuance worth about Rs. 136.9 crore. New promoters include Amarandhar Reddy, Srividhya Kotha and Rajesh Kumar Mallour, with a completely new board led by Kotha Amarandhar Reddy as Managing Director. No delisting is proposed, and the 25% minimum public shareholding norm will be achieved within three years.
Existing public shareholders face a near-total wipeout with 90% of their shares cancelled, ending up with just 0.33% of the new entity and losing meaningful say in the business. The stock effectively transitions from a food company to a Datacipher-led tech/education venture — a fundamental change in business identity for current investors.