Board approves cancellation, extinguishment of existing shares and 3,92,350 fresh shares under Approved Resolution Plan

Board outcome, October 1, 2026.

Thu 1 Oct 2026

Promoter shares cancelled

51,36,992 equity shares of Rs. 10/- each held by existing Promoter and Promoter Group, cancelled and extinguished without consideration

Public shares cancelled

48,89,008 equity shares of Rs. 10/- each held by public shareholders (Record Date July 8, 2026), cancelled without consideration

Fresh shares to public shareholders

20,650 fresh equity shares of Rs. 10/- each allotted to existing public shareholders, without consideration

Preferential allotment

3,92,350 fresh equity shares of Rs. 10/- each at Rs. 10/- each to five allottees

Resolution Plan approval

Approved Resolution Plan approved by NCLT, Bengaluru Bench, by order dated June 20, 2025

Board meeting outcome, October 1, 2026

The Board of Directors approved a set of actions under the "Approved Resolution Plan". The update explains that term as the Resolution Plan approved by the Hon'ble National Company Law Tribunal, Bengaluru Bench, Bengaluru, by its order dated June 20, 2025, under Section 31 of the Insolvency and Bankruptcy Code, 2016.

What is being cancelled

• All 51,36,992 equity shares of face value Rs. 10/- each held by the existing Promoter and Promoter Group are cancelled and extinguished, without payment of any consideration.
• All 48,89,008 equity shares of face value Rs. 10/- each held by the existing public shareholders as on the Record Date are cancelled and extinguished, without payment of any consideration.

What public shareholders receive

• 20,650 fresh equity shares of face value Rs. 10/- each are allotted to the existing public shareholders as on the Record Date, without any consideration.
• The Record Date stated in the update is July 8, 2026.
• Any fractional share entitlement is ignored, and no allotment is made for any fraction.

What is being allotted on a preferential basis

• 3,92,350 fresh equity shares of face value ₹10/- each, at a price of Rs. 10/- each, on a preferential basis under the Approved Resolution Plan.
• Of these, Parth Shaileshbhai Patel is allotted 1,56,940 shares and Rashmikaben S Patel is allotted 1,17,705 shares. The remaining three allottees each receive 39,235 shares. The total allotted is 3,92,350 shares.

How to read this

• Both the promoter group holding and the public holding are being extinguished, and a fresh set of shares is issued — to public shareholders in a much smaller number, and to a small group of allottees on a preferential basis.
• The update states these actions are taken in accordance with the Approved Resolution Plan and the NCLT order approving it.
• The face value of the cancelled shares and of the fresh shares is the same, Rs. 10/- each, and the preferential allotment price is also Rs. 10/- each.

Points to note

• Public shareholders as on the Record Date receive 20,650 shares against the 48,89,008 shares cancelled, and fractional entitlements are ignored.
• The preferential allotment of 3,92,350 shares is made to five named allottees, whose individual allotments are set out in the update.

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