XL Energy Limited has informed the Exchange about capital reduction as per approved resolution plan by Hon'ble National Company Law Tribunal.
Awaiting price reaction for this filing.
XL Energy Limited is implementing a major capital restructuring as part of a resolution plan approved by the NCLT Mumbai on April 19, 2024. The plan involves cancelling all 10.38 crore preference shares and 2.27 crore equity shares, with the company retaining only 80,100 equity shares for existing public shareholders. Preference shareholders and promoter-group equity holders get no consideration, and their shares are being extinguished. Following this, the successful resolution applicant consortium (Karishma Jain, Jupiter City Developers, and Adwaita Navigations) is infusing Rs. 1.52 crore by subscribing to 15.21 lakh fresh equity shares at Rs. 10 each. Post-restructuring, the new promoters will hold 95% of the company while existing public shareholders will be left with just 5% (80,100 shares).
This is a near-total wipeout for existing shareholders. Existing public shareholders are seeing their holdings dramatically diluted — the entire public category is now just 80,100 shares, and the original promoter group has been completely eliminated. The new promoter consortium takes 95% control with fresh capital of only Rs. 1.52 crore, meaning the stock will likely trade very thinly and existing investors have essentially lost most of their equity value.