Board approves cancellation of promoter and public shares; 20,650 fresh shares to public, 3,92,350 preferential allotment

Board meet on Oct 1, 2026 approved, under the Approved Resolution Plan: cancellation of 51,36,992 promoter and 48,89,008 public shares, allotment of 20,650 fresh shares to public shareholders.

Thu 1 Oct 2026

Promoter shares cancelled

51,36,992 equity shares of face value Rs. 10/- each

Public shares cancelled

48,89,008 equity shares of face value Rs. 10/- each

Fresh shares to public shareholders

20,650 fresh equity shares of face value Rs. 10/- each

Preferential allotment

3,92,350 fresh equity shares at Rs. 10/- each

Record date

July 8, 2026

The board of the company met on October 1, 2026 and approved a set of corporate actions that follow the Approved Resolution Plan — the resolution plan approved by the Hon'ble National Company Law Tribunal, Bengaluru Bench, by order dated June 20, 2025 under Section 31 of the Insolvency and Bankruptcy Code, 2016.

What the board approved

• Cancellation and extinguishment of all existing equity shares held by the existing Promoter and Promoter Group, i.e. 51,36,992 equity shares of face value Rs. 10/- each, without payment of any consideration.
• Cancellation and extinguishment of all existing equity shares held by existing public shareholders as on the Record Date, July 8, 2026, i.e. 48,89,008 equity shares of face value Rs. 10/- each, and allotment of 20,650 fresh equity shares of face value Rs. 10/- each to those public shareholders, without any consideration.
• Allotment of 3,92,350 fresh equity shares of face value ₹10/- each at a price of Rs. 10/- each on a preferential basis, in accordance with the Approved Resolution Plan.
• Any fractional shares entitlement to the public shareholders will be ignored, and no allotment will be considered for any fraction.

Who receives the preferential allotment

• Parth Shaileshbhai Patel: 1,56,940 fresh equity shares
• Rashmikaben S Patel: 1,17,705 fresh equity shares
• Alpesh Amrutlal Patel: 39,235 fresh equity shares
• Nitin Dahyabhai Patel: 39,235 fresh equity shares
• Jalak Shaileshbhai Patel: 39,235 fresh equity shares
• Total: 3,92,350 fresh equity shares

Reading it simply

Existing shares are being cancelled and extinguished without any payment of consideration. For public shareholders as on the Record Date, the cancelled holding of 48,89,008 equity shares is replaced by an allotment of 20,650 fresh equity shares, so each holder receives a much smaller number of shares than before, and any fraction is dropped.

The fresh shares to public shareholders and the preferential allotment are both of face value Rs. 10/- each, and the preferential allotment is priced at Rs. 10/- each.

The actions are stated to be in accordance with the Approved Resolution Plan approved by the NCLT order dated June 20, 2025 under Section 31 of the Insolvency and Bankruptcy Code, 2016.

The board meeting commenced at 4:00 P.M. (IST) and concluded at 5:00 p.m. (IST).

What this can mean for existing holders

• The number of shares a public shareholder holds after the exercise depends on the fresh shares allotted against the shares cancelled, with fractions ignored.
• The cancellation of the promoter and promoter group holding of 51,36,992 equity shares is without payment of any consideration.
• The news can be perceived as an implementation step under the Approved Resolution Plan, while for existing shareholders it involves a reduction in their shareholding, with fractional entitlements not allotted.

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