The unaudited financial statement for quarter ended on 30 September 2024 has been approved by Implementation and Monitoring Committee at its meeting held today
Awaiting price reaction for this filing.
PAE Limited, which has been under Corporate Insolvency Resolution Process (CIRP) since April 22, 2023 following NCLT Mumbai's admission order, has now received approval of its Resolution Plan from NCLT on November 27, 2024. The Monitoring Committee, currently managing the company, has approved the implementation: cancellation and extinguishment of 100% of all existing equity and preference shares, followed by fresh allotment of 50,000 equity shares to existing public shareholders (5% of new capital, aggregating ₹5 lakh) and 9,50,000 equity shares to the new Promoter and Promoter Group (95% of new capital, aggregating ₹95 lakh). The committee also took on record unaudited standalone financial results for Q1 (June 2024), Q2 (September 2024), and Q3 (December 2024) of FY25. Financials show near-zero revenue from operations, a loss after tax of ₹36.41 lakh in Q2 FY25, and deeply negative other equity of ₹(3,868.13) lakh as of September 30, 2024. Auditors issued a disclaimer opinion citing non-availability of balance confirmations, reconciliations, CoC meeting minutes, and absence of an internal auditor.
This is a severe value-erosion event for existing public shareholders — their holdings are being cancelled and replaced with just 5% of the restructured entity, effectively a 95% dilution. With near-zero revenue, ongoing losses, and disclaimer-grade audit reports, the stock is likely to see significant repricing once the restructured shares begin trading.