XL Energy Limited has informed the Exchange about Other Restructuring by way of reduction of share capital and capital infusion pursuant to approved Resolution Plan
Awaiting price reaction for this filing.
XL Energy Limited is implementing a major restructuring under a resolution plan approved by the NCLT Mumbai on April 19, 2024. The plan involves cancelling 10.37 crore preference shares and 2.27 crore existing equity shares, wiping out all promoter holdings and most public shareholdings. Public shareholders will retain only 80,100 equity shares (down from 2.27 crore), while preference shareholders and old promoters get nothing. The Resolution Applicant consortium (Karishma Jain, Jupiter City Developers, and Adwaita Navigations) will then infuse Rs. 1.52 crore by subscribing to 15.21 lakh fresh equity shares at Rs. 10 each. After the restructuring, the new promoters will own 95% of the company, leaving existing public shareholders with just 5%.
Existing public shareholders will see their stake diluted dramatically from 77.77% to just 5%, and most of their shares will be cancelled. The company is effectively being taken over by the resolution applicant consortium, with old promoters and preference shareholders completely wiped out. Existing public shareholders should review whether they fall in the small group retaining shares or are among those being cancelled out.