Description

Kanel Industries Ltd. equity shares to be listed on BSE under XT Group effective February 12, 2026, following NCLT-approved resolution plan with capital reduction and preferential allotment.

Summary

Kanel Industries Ltd. equity shares will be listed on BSE under XT Group effective February 12, 2026, following an NCLT-approved resolution plan under the Insolvency and Bankruptcy Code, 2016. The listing involves capital restructuring including reduction of existing shares to 7,87,500 shares and preferential allotment of 1,49,62,500 shares to the Successful Resolution Applicant. Trading will be in Trade-to-Trade segment under scrip code 500236 (KANELIND).

Key Points

  • Listing effective date: February 12, 2026
  • Total equity shares post-restructuring: 1,57,50,000 shares of Rs. 10/- each
  • Scrip Code: 500236, ISIN: INE252C01023
  • Trading Group: XT Group (Trade-to-Trade segment)
  • Market lot: 1 share
  • Shares currently in dematerialized mode under temporary ISIN
  • Company part of special pre-open session for IPO and Other category scrips
  • Registered office: 1503-West Port, Sindhubhavan Road, NR. S.P. Ring Road, Ahmedabad, Gujarat, 380059

Regulatory Changes

The listing follows NCLT Mumbai Bench order dated October 23, 2024, approving the Resolution Plan under the Insolvency and Bankruptcy Code, 2016. The resolution plan mandated:

  • Cancellation of all shares held by Promoters
  • Cancellation of shares held by shareholders with 1,000 shares or less
  • Proportionate reduction of shares for shareholders holding more than 1,000 shares to aggregate 7,87,500 shares
  • Preferential allotment of 1,49,62,500 shares to Successful Resolution Applicant

Compliance Requirements

  • Market participants must note the XT Group classification and Trade-to-Trade segment requirements per Exchange Notice No. 20230210-55 dated February 10, 2023
  • Trading will follow special pre-open session rules as per SEBI Circulars CIR/MRD/DP/01/2012 and CIR/MRD/DP/02/2012 dated January 20, 2012
  • Shares currently under temporary ISIN per SEBI circular CIR/MRD/DP/21/2012 dated August 02, 2012

Important Dates

  • February 10, 2026: Notice date
  • February 12, 2026: Listing effective date
  • November 19, 2024: Record date for resolution plan implementation (per Exchange Notice No. 20241118-5)
  • February 15, 2027: Lock-in expiry for 1,41,75,000 shares (distinctive nos. 787501 to 14962500)

Impact Assessment

For Existing Shareholders:

  • Shareholders with ≤1,000 shares: Complete share cancellation
  • Promoters: Complete share cancellation
  • Shareholders with >1,000 shares: Proportionate reduction to aggregate of 7,87,500 shares (significant dilution)

For Market:

  • Company emerges from insolvency with restructured capital
  • XT Group classification indicates higher risk profile
  • Trade-to-Trade segment restricts intraday trading, requires delivery-based settlement only
  • Lock-in of 89.9% shares (1,41,75,000 out of 1,57,50,000) until February 15, 2027 limits immediate liquidity
  • Successful Resolution Applicant gains 95% ownership (1,49,62,500 out of 1,57,50,000 shares)

Impact Justification

Listing of company post-insolvency resolution affects existing shareholders through capital reduction and restructuring, but limited to XT group with trade-to-trade restrictions.