Description

Trading in DS Kulkarni Developers Limited to resume from December 02, 2025 for limited purpose of achieving Minimum Public Shareholding compliance through Offer for Sale mechanism following IBC resolution plan implementation.

Summary

BSE has announced that trading in equity shares of DS Kulkarni Developers Limited (Scrip Code: 523890) will resume from December 02, 2025, following the implementation of a resolution plan under the Insolvency & Bankruptcy Code, 2016. The trading resumption is limited to achieving Minimum Public Shareholding (MPS) compliance through an Offer for Sale (OFS) mechanism. The company underwent significant capital restructuring with only 5,00,000 equity shares designated for public shareholders, while 95,00,000 shares were allotted to the successful resolution applicant. Normal trading will commence only after MPS compliance is achieved.

Key Points

  • Trading to resume on December 02, 2025 for limited purpose of MPS compliance
  • Total 5,00,000 equity shares allotted to DSK Shareholders Trust
  • 95,00,000 equity shares allotted to successful resolution applicant and affiliates on preferential basis
  • Face value and paid-up value: Rs. 10/- per share
  • ISIN: INE891A01022
  • Market lot: 01 share
  • Shares are pari passu
  • OFS mechanism to be used for achieving 5% public shareholding requirement
  • Separate notice to be issued for OFS details
  • Lock-in details to be provided post MPS compliance
  • Capital reduction was implemented pursuant to NCLT order dated June 23, 2023

Regulatory Changes

The trading resumption follows implementation of the resolution plan approved under the Insolvency & Bankruptcy Code, 2016. The process is being conducted in accordance with:

  • Rule 19A(5) of Securities Contracts (Regulations) Rules, 1957 (SCRR)
  • SEBI Master Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
  • NCLT order dated June 23, 2023 approving the Resolution Plan

The capital structure has been fundamentally restructured post-resolution plan with significant reduction in total equity shares outstanding.

Compliance Requirements

  • Company must achieve 5% public shareholding through OFS mechanism
  • Trading Members must note the limited trading window for MPS compliance
  • Company must complete all formalities post-OFS before normal trading commences
  • Lock-in requirements will be specified after MPS compliance is achieved
  • Company had fixed September 21, 2023 as record date for capital reduction pursuant to NCLT order

Important Dates

  • November 28, 2025: Notice date
  • December 02, 2025: Trading resumption date (limited to MPS compliance)
  • June 23, 2023: NCLT approval date for Resolution Plan
  • September 21, 2023: Record date for capital reduction
  • Post-OFS completion: Normal trading commencement (date to be announced separately)

Impact Assessment

For Existing Shareholders: Significant dilution has occurred as the total share capital has been drastically reduced to 1,00,00,000 shares (from a much larger base pre-resolution plan), with 95% allocated to the resolution applicant. Only 5,00,000 shares (5%) are available for public shareholders.

For Market Participants: Limited trading window creates unique opportunity for participation in OFS to achieve MPS compliance. Trading volume will be restricted until normal trading resumes post-MPS achievement.

For the Company: Successful completion of MPS compliance is critical for maintaining listing status and transitioning to normal trading operations post-insolvency resolution. The company has undergone complete restructuring under IBC framework.

Liquidity Considerations: Extremely low public float (5,00,000 shares) may result in limited liquidity even after normal trading resumes. Market participants should be aware of potential price volatility due to limited free float.

Impact Justification

Major corporate action involving trading resumption post-IBC resolution plan with significant capital restructuring and MPS compliance requirements affecting existing shareholders