In a major corporate development, the company has announced a preferential allotment of equity shares to promoters and strategic investors as part of an NCLT-approved resolution plan. The company will issue 10 crore equity shares at ₹10 per share, amounting to a total of ₹100 crore. The allotment will be made to 58 investors, marking a significant move in the corporate restructuring process.

Preferential Allotment Details

Under the preferential issue, the company aims to raise ₹100 crore by allotting shares at a fixed price of ₹10 per share. This issuance is in line with the approved resolution plan by the Hon’ble National Company Law Tribunal (NCLT). The allotment is expected to strengthen the financial position of the company and ensure strategic investor participation in its growth.

Key Highlights of the Share Issuance

• Total shares issued: 10 crore equity shares

• Face value per share: ₹10

• Total amount raised: ₹100 crore

• Issue type: Preferential allotment

• Investors: Promoters and strategic investors (58 in total)

• Regulatory Approval: Hon’ble NCLT-approved resolution plan

Why This Preferential Issue Matters?

This equity allotment under NCLT guidelines is a strategic move by the company to boost its financial position and restructure operations. The issuance to strategic investors and promoters will help in:

• Enhancing liquidity and financial stability.

• Ensuring compliance with the NCLT’s corporate resolution plan.

• Attracting long-term investors and strengthening shareholder value.

Impact on the Company and Investors

The allotment will have a significant impact on the company’s stock performance. With new strategic investors on board, the company is expected to witness better governance, financial discipline, and potential future expansion.

NCLT’s Role in the Resolution Plan

The National Company Law Tribunal (NCLT) plays a crucial role in corporate restructuring. The approval of this preferential allotment ensures that the company follows a structured approach to debt resolution and financial revival. The tribunal’s approval makes the transaction legally binding and ensures that all regulatory requirements are met.

Investor Confidence and Market Reaction

With this ₹100 crore fund infusion, the market perception of the company is expected to improve. Investors are likely to see this move as a positive restructuring effort, which could lead to increased stock stability and potential growth in share value over time.

Future Outlook

This preferential allotment marks an important milestone in the company’s revival strategy. Moving forward, investors will closely monitor:

• The impact of the allotment on stock performance.

• Any potential changes in shareholding patterns.

• Company’s operational and financial performance post-allotment.

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