Cross-holdings cancelled as amalgamation scheme becomes effective from 23rd October 2026
The Scheme of Amalgamation of Rudra Ecovation Ltd with Shiva Texfabs Ltd became effective 23rd October 2026.
By ScoutQuest · · 1 min read
- Effective Date
- 23rd October 2026
- NCLT Order Date
- 16th September 2026 (NCLT, Chandigarh Bench-I)
- Cross-holdings Cancelled
- ~23.39 lakh fully paid-up equity shares, ~47.02 lakh partly paid-up equity shares, 12 lakh Redeemable Preference Shares
What was announced
Shiva Texfabs Ltd has told BSE that the Scheme of Amalgamation of Rudra Ecovation Ltd (Transferor Company) with Shiva Texfabs Ltd (Transferee Company) has become effective from 23rd October 2026. That is the date the formal order of the Hon'ble NCLT, Chandigarh Bench-I, Chandigarh, dated 16th September 2026, was shared with the Registrar of Companies.
The cross-holdings cancelled
Under the Scheme, once it came into effect the cross-holding of shares between the two companies stands cancelled and extinguished with effect from the Effective Date. The update lists three such holdings:
- ~23.39 lakh fully paid-up equity shares of ₹10 each of Shiva Texfabs Ltd held by Rudra Ecovation Ltd
- ~47.02 lakh partly paid-up equity shares of Shiva Texfabs Ltd held by Rudra Ecovation Ltd
- 12 lakh fully paid-up compulsorily Redeemable Preference Shares of Rudra Ecovation Ltd held by Shiva Texfabs Ltd
In simple terms
A cross-holding means each company owns a slice of the other. Once Rudra Ecovation merges into Shiva Texfabs, Rudra Ecovation ceases to exist as a separate company, so the shares it held in Shiva Texfabs are cancelled instead of being passed on. In the same way, the preference shares that Shiva Texfabs held in Rudra Ecovation are extinguished. This is what the Scheme provides for, so that after a merger a company does not end up holding its own shares.
What a reader can take away
- The merger is no longer only approved; it is effective from 23rd October 2026.
- The three blocks of shares listed above cease to exist as cross-holdings, which changes who holds what in the merged entity.
- The letter is a follow-up to the company's earlier letter dated 23rd October 2026, and is marked for information and record.
Also from Rudra Ecovation
Record date fixed at 6 November 2026 for allotment of shares under amalgamation
23 Oct 2026
Amalgamation scheme effective; 0.213 share swap for every 1 share held
23 Oct 2026
Board approves unaudited standalone Q2 FY27 results; auditor's review unmodified with two emphasis of matter
12 Oct 2026
More numbers
- Fully paid-up equity shares of Shiva Texfabs held by Rudra Ecovation23,39,181
- Partly paid-up equity shares of Shiva Texfabs held by Rudra Ecovation47,01,755
- Compulsorily Redeemable Preference Shares of Rudra Ecovation held by Shiva Texfabs12,00,000
- Face value per fully paid-up equity share₹10
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