The Hon'ble NCLT-Ahmedabad Bench, at the hearing held on 19th April 2024, Pronounced Orders in CP No. (IB)- 407 of 2020 in the matter of Kamal Kishor Gurnani (RP of Maximaa Systems Limited) ....
Awaiting price reaction for this filing.
Maximaa Systems has received NCLT Ahmedabad approval (dated 19 April 2024) for its Resolution Plan submitted by Mr. Prasanna Sai Raghuveer Kandula, along with a merger of Jan Shakti Oil Products Private Limited into the company. Under the plan, all existing promoter shares will be cancelled without payout, and public shareholders face a 95% cancellation of their holdings (keeping only 1 share for every 20 held). The Resolution Applicant is infusing Rs. 3.6 crore and will hold about 6.31% of the company, while Jan Shakti Oil Products shareholders will receive 25 crore shares (87.72%) through the merger, and 1.5 crore shares will go to strategic investors via preferential allotment. Creditors are recovering only 1-10% of admitted claims (Rs. 34.3 crore admitted for secured financial creditors, with only Rs. 3.43 crore paid). The company name, object clause, and authorized share capital will be changed as part of the revival.
This is a near-total wipeout for existing public shareholders (95% loss of holdings) as the company effectively restructures under new ownership. The listing will continue but the equity base expands sharply, diluting any remaining value. For new investors, the merged entity starts fresh under a new promoter focused on AI/FinTech-adjacent businesses, but with extremely low creditor recoveries signaling past distress.