Description

Trading suspension and capital reduction for RCI Industries & Technologies Limited effective November 28, 2025, involving extinguishment of promoter shareholding and reduction of public shareholding to 5% as per NCLT-approved resolution plan.

Summary

BSE has announced the implementation of a Resolution Plan approved by the Hon’ble National Company Law Tribunal (NCLT), New Delhi Bench for RCI Industries & Technologies Limited (Scrip Code: 537254). The plan involves complete cancellation of promoter shareholding and reduction of public shareholding to only 5% of the fully diluted capital structure. Trading in the company’s equity shares will be suspended from November 28, 2025. The record date for the capital reduction is set as November 28, 2025.

Key Points

  • Complete extinguishment of promoter and promoter group shareholding through cancellation of their equity shares
  • Existing public shareholding to be reduced to 5% of fully diluted capital structure post-implementation
  • Record date for capital reduction: November 28, 2025
  • Trading currently restricted due to GSM (General Surveillance Measure)
  • Trading suspension effective from November 28, 2025
  • Settlement number: DR-766/2025-2026
  • Resolution Plan approved by NCLT New Delhi Bench

Regulatory Changes

The NCLT-approved Resolution Plan mandates a fundamental restructuring of the company’s capital structure:

  1. Promoter Shareholding: Complete cancellation and extinguishment of all equity shares held by promoters and promoter group
  2. Public Shareholding: Cancellation and extinguishment of existing public shareholding, with only 5% retention in the post-implementation capital structure
  3. Trading Status: Transition from restricted trading (GSM) to complete suspension

Compliance Requirements

  • Trading Members: Must note that trading in RCI Industries & Technologies Limited shares is currently restricted on account of GSM
  • Trading Members: Must cease all trading activities in the scrip from November 28, 2025 onwards
  • All Market Participants: Must be aware of the capital reduction and its implications for existing shareholdings
  • Shareholders: Record date of November 28, 2025 determines eligibility for the capital reduction process

Important Dates

  • November 25, 2025: Circular issuance date
  • November 28, 2025: Record date for capital reduction
  • November 28, 2025: Trading suspension effective date
  • Settlement DR-766/2025-2026: Applicable settlement period

Impact Assessment

Shareholder Impact: Extremely high - Existing promoters will lose their entire shareholding, while public shareholders will see their holdings reduced to only 5% of the reconstituted capital structure. This represents a near-total dilution for existing public investors.

Trading Impact: Complete suspension of trading from November 28, 2025, eliminating liquidity for existing shareholders who may wish to exit their positions.

Corporate Governance: The resolution plan indicates the company is undergoing significant financial restructuring, likely as part of insolvency resolution proceedings under the Insolvency and Bankruptcy Code.

Market Operations: Trading members must update their systems and client communications to reflect the suspension and capital restructuring. No dealings permitted from the record date onwards.

Legal Framework: Implementation is under NCLT supervision, providing a formal legal framework but also indicating serious financial distress that necessitated tribunal intervention.

Impact Justification

Major corporate restructuring involving complete extinguishment of promoter shareholding and drastic reduction of public shareholding to 5%, with immediate trading suspension. Significant impact on existing shareholders.