Disbursement of net proceeds from sale of fractional share entitlements completed

JTL Defence says net proceeds from the sale of fractional share entitlements, which arose from the paid-up capital reduction under its NCLT-approved resolution plan, have been credited to eligible shareholders' bank accounts.

Mon 12 Oct 2026

Payout Status

Net proceeds from sale of fractional share entitlements credited to eligible shareholders' bank accounts

Basis of Entitlement

Paid-up capital reduction under resolution plan approved by NCLT

Pending Action

Shareholders with incomplete bank details will be asked to update correct bank details

What the company said

JTL Defence Limited (erstwhile RCI Industries & Technologies Limited) has informed BSE that the sale of fractional share entitlements and the disbursement of the net proceeds have been credited to the respective bank accounts of eligible shareholders.

How the fractional entitlements arose

• A resolution plan for the company was approved by the Hon'ble National Company Law Tribunal (NCLT), New Delhi Bench.
• That resolution plan provided for a reduction of the company's paid-up share capital.
• As a result of the capital reduction, some eligible shareholders were left with fractional share entitlements, which could not be allotted as whole numbers.
• These fractional entitlements were consolidated and transferred to a Suspense Account, so the shares could be sold in the open market on behalf of the eligible shareholders.

Where things stand now

• The sale of those fractional share entitlements is done, and the net proceeds have been credited to the bank accounts of the eligible shareholders.
• Shareholders whose proceeds could not be credited because of incomplete bank details will be informed by the company or its Registrar and Transfer Agent (RTA) to update their correct bank details.

What this means for a retail investor

• A Suspense Account is an interim holding account used when shares cannot be split into whole numbers for each shareholder. The shares are pooled there, sold in the market, and the money is passed back to the shareholders who were entitled to them.
• For an affected shareholder, this marks the cash-settlement step of a process that began with the capital reduction under the approved resolution plan, and the payout replaces a fractional entitlement that could not be given as a share.
• If a shareholder has not received the money, the reason indicated here is incomplete bank details, and the action needed is to update the correct bank details with the company or the RTA once informed.
• The letter is marked as being for information and records, so it is an update on the payout status rather than a new corporate action.

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