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The shares of Monnet Ispat & Energy will be listed on the BSE on September 12 after the Insolvency & Bankruptcy Code (IBC) proceedings. The shares will be traded under the compulsory delivery segment — T Group.
The resolution plan, submitted by the consortium of JSW Steel and AION Investments Pvt Ltd, involving reduction of capital was approved by the National Company Law Tribunal, Mumbai bench.
Accordingly, the paid-up and subscribed equity share capital of the company held by the non-promoter shareholders was reduced on proportionate basis to 33.06 per cent of its original value without any payout, i.e., one equity share of the company of ₹10 each was reduced to ₹3.3 each. Then, the equity shares with reduced face value of ₹3.3 were consolidated into equity shares of ₹10 each while the then promoters’ 100 per cent equity share capital was extinguished.
A non-promoter shareholder holding 100 equity shares of the firm was entitled to receive 33 equity shares of the company upon reduction and consolidation of the equity share capital of the company, as on the record date of August 28.
Monnet Ispat is part of the first lot of 12 large non-performing loans referred by the RBI for early resolution under the IBC last year.
The company owes lenders ₹10,000 crore and the committee of creditors (CoC) has agreed to take a haircut of around 72 per cent to settle the loan.
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