Description
RCI Industries & Technologies Limited will reduce equity share capital as per NCLT-approved Resolution Plan, including extinguishment of promoter shareholding and reduction of public shareholding to 5% of fully diluted capital. Trading suspended from November 28, 2025.
Summary
RCI Industries & Technologies Limited (Scrip Code: 537254) will implement a capital reduction under a Resolution Plan approved by the Hon’ble National Company Law Tribunal, New Delhi Bench. The record date is set for November 28, 2025. The plan involves complete extinguishment of promoter and promoter group shareholding, and reduction of existing public shareholding to only 5% of the fully diluted capital structure post-implementation. Trading in the company’s equity shares will be suspended from November 28, 2025.
Key Points
- Record date for capital reduction: November 28, 2025
- Complete cancellation and extinguishment of all promoter and promoter group equity shareholding
- Existing public shareholding to be reduced to only 5% of fully diluted capital structure post-implementation
- This implies 95% of current public shareholding will be cancelled and extinguished
- Resolution Plan approved by National Company Law Tribunal, New Delhi Bench
- Trading currently restricted due to Graded Surveillance Measure (GSM)
- Trading suspension effective from November 28, 2025
- Demat Request Number: DR-766/2025-2026
Regulatory Changes
Implementation of NCLT-approved Resolution Plan involving fundamental changes to the company’s capital structure and shareholding pattern. This represents a court-sanctioned corporate restructuring under insolvency and bankruptcy proceedings.
Compliance Requirements
- Trading members must note the trading suspension effective November 28, 2025
- No dealings permitted from the record date of November 28, 2025
- Settlement number DR-766/2025-2026 applies
- Trading members should inform their clients holding shares in RCI Industries & Technologies Limited about the capital reduction and its implications
Important Dates
- November 25, 2025: Circular notice date
- November 28, 2025: Record date for capital reduction
- November 28, 2025: Trading suspension begins
- November 28, 2025: No dealings period commences
Impact Assessment
Impact Level: High - Critical for all shareholders
This is an extremely significant corporate action with severe implications:
For Promoters: Complete loss of shareholding through extinguishment - promoter and promoter group will have zero equity stake post-implementation.
For Public Shareholders: Approximately 95% of existing public shareholding will be cancelled and extinguished. Only 5% of current public shareholders will retain equity (likely on a proportionate basis, though specific allocation methodology not detailed in this circular).
Trading Impact: Complete trading suspension eliminates liquidity and exit options for shareholders from November 28, 2025 onwards.
Market Implications: The stock is already under Graded Surveillance Measure (GSM), indicating pre-existing concerns. The NCLT-approved Resolution Plan suggests the company underwent insolvency or significant financial distress proceedings.
Investor Consideration: Shareholders should urgently review the complete Resolution Plan document and seek legal/financial advice regarding their rights and potential recoveries under the plan. The massive dilution/extinguishment indicates substantial value impairment.
Impact Justification
Major corporate restructuring involving complete extinguishment of promoter shareholding and 95% reduction in public shareholding under NCLT-approved Resolution Plan, with immediate trading suspension. Highly material event for all shareholders.