Share capital audit report deferred until the capital restructuring exercise is updated
Company says the Reconciliation of Share Capital Audit Report for the quarter ended 30.09.2026 will serve no meaningful purpose until the capital restructuring is updated.
By ScoutQuest · · 2 min read
- Public shares reserved
- 97,035 shares (5%) reserved for existing public shareholders
- Share ratio
- 0.000883 share for every 1 share held
- Shares allotted to Assignee
- 19.4 lakh equity shares allotted to the Assignee, M/s Reddy Investments Pvt Ltd
What the company told the exchange
The company informed BSE that the Reconciliation of Share Capital Audit Report for the quarter ended 30.09.2026, required under Regulation 76, will serve no meaningful purpose unless the capital restructuring exercise is updated.
Background of the company's ownership
- The Hon'ble Company Law Tribunal, Hyderabad Bench, initiated liquidation as a going concern.
- The Company was sold as a going concern under the Insolvency and Bankruptcy Code, 2016, with the Liquidator issuing a Sale Certificate dated 14.06.2023 in favour of Indo Aquatics Limited, which later assigned the Company to M/s Reddy Investments Pvt Ltd.
- The new management was inducted on the Board with effect from 29.03.2025, and the necessary intimations were given to the stock exchanges.
- The Assignee is in the process of a complete takeover of the Company, including records and papers.
Capital restructuring approved by the Board
Pursuant to the National Company Law Tribunal, Hyderabad Bench orders dated 18.07.2024, for the purpose of capital restructuring post-acquisition under the Code, the Board approved the following in its meetings:
- Meeting (13/2025-26) dated 18.09.2025: the entire equity shareholding of the erstwhile Promoters/Promoters Group is cancelled and reduced to Zero, without any pay out.
- Also at that meeting: the shareholding of the existing public shareholders, i.e. 5% of shares, i.e. 97, 035 shares, will be reserved for such public shareholders who previously held the extinguished equity capital, in the ratio of 0.000883 share for every 1 share held, without any pay out.
- 700 shares were allotted in PAS-3 to the Nominee/Public shareholders.
- Meeting (15/2025-26) dated 16.12.2025: allotment of 19.4 lakh equity shares of the Company to the Assignee, M/s Reddy Investments Pvt Ltd.
Where the process stands
To give effect to the above, the relevant Corporate Action Forms and the Listing Applications have been shared with the concerned depositories and stock exchanges respectively, and are under process.
What this means for a retail holder
- The existing equity capital is being restructured. The erstwhile promoter/promoter group holding goes to zero without any pay out.
- Public shareholders who previously held the extinguished equity capital are to be given shares in the ratio of 0.000883 share for every 1 share held, with the 97,035 shares representing 5% of shares reserved for this.
- A block of 19.4 lakh equity shares is being allotted to the Assignee, M/s Reddy Investments Pvt Ltd.
- The company's stated position is that the share capital audit report for the quarter would not be meaningful until this restructuring is reflected in the records.
More numbers
- Public shareholding reserved (percentage)5%
- Shares reserved for existing public shareholders97, 035 shares
- Ratio of shares given per share held0.000883
- Shares allotted in PAS-3 to Nominee/Public shareholders700 shares
- Equity shares allotted to the Assignee19,40,000 equity shares
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