In a pivotal development for Autopal Industries Limited, the company has announced a series of resolutions taken during the first meeting of the newly constituted Board of Directors, post the successful completion of its Corporate Insolvency Resolution Process. The meeting, which took place on 7th November 2024, covered several key decisions concerning the company’s restructuring and future operations. These include the approval of a merger with RNIT Solutions & Services Limited, and significant leadership appointments following the National Company Law Tribunal (NCLT) order.

Merger with RNIT Solutions & Services Limited

The Board of Directors officially took note of the merger of RNIT Solutions & Services Limited into Autopal Industries Limited. The merger is part of the Resolution Plan, which was approved by the NCLT Jaipur Bench in the order dated 23rd September, 2024. This step marks a significant phase in the company’s restructuring efforts, as it paves the way for integrating RNIT Solutions' resources and capital into Autopal Industries, with the intention of expanding the business portfolio and enhancing business synergies.

Director and CEO Appointments

Another key aspect of the meeting was the appointment of Mr. Raja Srinivas Nandigam as Managing Director of the company. Mr. Nandigam, who was already serving as Executive Director, brings over 18 years of executive management experience, having led multinational companies and successfully diversified their revenue streams. His leadership is expected to drive growth and operational excellence at Autopal.

Additionally, Mrs. Neelima Nandigam, the company's Executive Director, has been appointed as the Chief Executive Officer (CEO). With over 15 years of experience in the Information Technology (IT) sector, her expertise in IT management, software development, and strategic planning will be pivotal in steering the company towards its future growth objectives. The appointment of both Mr. Raja and Mrs. Neelima Nandigam represents a clear strategy for strong leadership, with a focus on long-term growth and operational success.

Changes in Company Name and Capital Structure

A noteworthy resolution during the board meeting was the decision to change the company’s name from Autopal Industries Limited to RNIT Al Solutions Limited. This change reflects the strategic shift post-merger and the company's new direction towards technology solutions and IT services, a key focus in the approved Resolution Plan. The name change is subject to approval by the Central Registration Centre of the Ministry of Corporate Affairs.

In addition to the name change, the board also approved a significant increase in the company's authorised capital. The authorised capital will be raised from INR 43 crores to INR 85 crores to accommodate the merger of RNIT Solutions. This increase in capital is expected to provide the necessary financial flexibility to support the expanded operations and future growth of the business.

Reduction in Shareholding and Other Corporate Actions

In line with the Resolution Plan, the shareholding structure will undergo major changes. The promoter shareholding will be completely extinguished, and there will be a 75% reduction in public shareholding. These changes are designed to realign the equity capital in accordance with the merger and corporate restructuring process.

Moreover, the entire 9% redeemable non-cumulative preference shares will be extinguished without any payout as part of the corporate actions triggered by the NCLT order. Shareholders can expect changes in their equity holdings following the record date of 29th November 2024, which will finalize the adjustments in the capital structure.

The Road Ahead for Autopal Industries Limited

With these changes, Autopal Industries Limited is positioned for a new phase of growth and transformation. The company’s focus on technology solutions, IT services, and digital transformation will be central to its strategy moving forward. This restructuring and the leadership changes signify a strong commitment to operational excellence and value creation for all stakeholders.

As the company embarks on this journey, shareholders and stakeholders are encouraged to stay informed about upcoming developments and actions that will shape the future of Autopal Industries in its new avatar as RNIT Al Solutions Limited.

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