Share cancellation and re-allotment under NCLT Resolution Plan

Nclt Resolution ApprovedRegulatory & Legal View source PDF Explain this filing

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AI summary

Blue Blends board approved implementation of NCLT-approved Resolution Plan. All 1.15 crore promoter shares cancelled without payment. All 1.01 crore public shares cancelled; public shareholders get only 2.7 lakh new shares in ratio of 4 for every 150 held (about 97 percent loss). 50 lakh fresh shares allotted preferentially at Rs 10 to Neolite Polymer Industries (49.9 lakh) and Amit Shah (10,000).

Likely market impact

Catastrophic dilution for existing shareholders. Public investors lose about 97 percent of holdings. New investors take control via preferential allotment.