Fenoplast Limited Withdraws Proposal for Record Date on Equity Share Capital Reduction

Fenoplast Limited has withdrawn its proposal to fix a record date for the reduction of equity share capital, postponing the implementation of a resolution plan that was approved by the National Company Law Tribunal (NCLT). The decision comes following communication from BSE Limited and represents a temporary halt to the capital restructuring process.

Corporate Action Withdrawal

The company formally communicated its decision to BSE Limited on 20.03.2026, referencing the exchange's email dated 19.03.2026 as the basis for the withdrawal. This development follows the company's earlier intimation on 11.03.2026 regarding the proposed fixation of the record date.

Parameter: Details Original Proposal Date: 11.03.2026 BSE Communication: 19.03.2026 Withdrawal Date: 20.03.2026 NCLT Order Date: 22.01.2025 Tribunal: NCLT Hyderabad Bench

NCLT Resolution Plan Background

The proposed equity share capital reduction was part of a resolution plan that received approval from the Hon'ble National Company Law Tribunal, Hyderabad Bench through its order dated 22.01.2025. The resolution plan had set the framework for the capital restructuring, which the company was preparing to implement through the record date mechanism.

Current Status and Future Updates

Fenoplast Limited has indicated that the withdrawal is "for the time being," suggesting that the proposal may be reconsidered at a later date. The company has committed to keeping BSE Limited informed of any further updates or developments regarding this matter.

The communication was signed by Krishna Kumar Haridas, Director of the company (DIN: 00260198), and sent from the company's registered office in Secunderabad. The company maintains its commitment to regulatory compliance and transparent communication with the stock exchange regarding corporate actions.

Fenoplast Ltd has set Monday, March 23, 2026 as the record date for a significant reduction in its equity share capital under a resolution plan approved by the National Company Law Tribunal (NCLT). The announcement, made on March 11, 2026, outlines a selective reduction scheme that will impact both promoter and public shareholders differently.

NCLT-Approved Resolution Plan Details

The reduction is being implemented pursuant to a resolution plan approved by the Hon'ble National Company Law Tribunal, Hyderabad Bench through its order dated January 22, 2025. The plan operates under the framework of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016.

Share Capital Reduction Structure

The selective reduction will follow a differentiated approach for various shareholder categories:

Shareholder Category: Reduction Percentage Details Erstwhile Promoter Group: 100% Complete extinguishment of shareholding Public Shareholders: Up to 95% Selective reduction with share consolidation

Public Shareholder Impact

For public shareholders, the plan involves a share consolidation mechanism where they will receive one equity share of Rs.10 each for every 20 equity shares of Rs.10 each held on the record date. This represents a significant consolidation ratio that will substantially reduce the number of outstanding shares while maintaining proportional ownership among remaining public shareholders.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 42 of SEBI's listing regulations by announcing the record date well in advance. The communication, signed by Director Krishna Kumar Haridas (DIN: 00260198), ensures that shareholders have adequate notice of the corporate action.

Implementation Timeline

With the record date set for March 23, 2026, shareholders whose names appear in the company's records on this date will be affected by the share capital reduction. The NCLT's approval in January 2025 provided the legal framework for this restructuring, which is now moving toward implementation after the requisite regulatory processes.

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