Morarjee Textiles Limited, a part of the Ashok Piramal Group, recently issued a disclosure confirming its status as not a Large Corporate under the applicability criteria provided in the SEBI circular no. SEBI/HO/DDHS/DDHSRACPOD1/P/CIR/2023/172 dated 19th October 2023. The company submitted this confirmation as part of its mandatory regulatory disclosure, fulfilling its obligations under the circular.

In the communication sent to both the BSE and NSE on 30th April 2025, Morarjee Textiles stated that it does not meet the criteria set forth by SEBI to be categorized as a Large Corporate. The criteria under the SEBI guidelines mainly focus on a company’s borrowings and credit rating, which are used to assess whether the company qualifies under the Large Corporate definition.

Key Details in the Disclosure
As part of the required disclosure, Morarjee Textiles outlined certain financial details, including its outstanding borrowings as of 31st March. The total outstanding borrowings of the company stood at Rs. 505.76 Crores. Importantly, the company also clarified that its highest credit rating during the previous financial year did not meet the thresholds required under the SEBI circular, making it ineligible for the Large Corporate categorization.

Another significant aspect mentioned in the disclosure is the company’s status under the Insolvency and Bankruptcy Code, 2016. Morarjee Textiles is currently undergoing the Corporate Insolvency Resolution Process (CIRP). This process was initiated by the National Company Law Tribunal (NCLT) in February 2024, with Mr. Ravi Sethia appointed as the Interim Resolution Professional. Morarjee Textiles’ affairs, business, and assets are now being managed under his oversight. The company’s Resolution Professional status was subsequently confirmed by the Committee of Creditors in May 2024.

Morarjee Textiles has reiterated that this disclosure aligns with the provisions outlined under SEBI’s 2023 guidelines and emphasizes the non-applicability of the Large Corporate status to its operations. This is a key update for investors and stakeholders, signaling the company’s ongoing adherence to regulatory requirements despite its insolvency proceedings.

This disclosure ensures that Morarjee Textiles Limited continues to maintain transparency with the market, reinforcing the company’s commitment to compliance and corporate governance, especially amidst the ongoing Corporate Insolvency Resolution Process (CIRP).

Given the company's involvement in insolvency proceedings, stakeholders are advised to remain informed about future updates, as the Resolution Professional and the Committee of Creditors will play a critical role in guiding the company through its restructuring process.

In conclusion, while Morarjee Textiles does not qualify as a Large Corporate under SEBI’s recent guidelines, the company’s financial health and ongoing insolvency process continue to shape its future course of action. Investors and stakeholders are encouraged to closely monitor further developments and regulatory disclosures as the company works through the CIRP process.

For additional information, stakeholders can follow updates via the official channels and announcements from Morarjee Textiles Limited.

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