Electrotherm: NCLT Approves Issuance of 1.095 Cr Preference Shares
Electrotherm (India) Limited received NCLT approval to issue 1,09,50,000 preference shares of ₹10 each. The shares are redeemable between 2-20 years. Existing unredeemed shares will be redeemed upon this issuance. A separate redemption of 10,50,000 shares will occur for a non-consenting shareholder.
The issuance and redemption of preference shares involve a significant number of shares and a substantial amount, impacting the company's capital structure and financial obligations.
The NCLT order permits the company to issue preference shares and redeem existing ones, which is a positive step towards resolving past obligations and restructuring capital.
Electrotherm (India) Limited has received an order from the Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench, dated 21st July, 2026, allowing the company to issue and allot 1,09,50,000 (One Crore Nine Lakhs and Fifty Thousand) 6% Non-Cumulative Redeemable Preference Shares (NCRPS) of ₹10/- each. This issuance is to existing preference shareholders, excluding Ahmedabad Aviation and Aeronautics Limited, on the same terms as the original issue. These shares will be redeemable between two and twenty years from the allotment date.
Upon this issuance and allotment, the existing unredeemed preference shares equivalent to the newly issued ones will be considered redeemed as per Section 55(3) of the Companies Act, 2013. For Ahmedabad Aviation and Aeronautics Limited, which did not consent, the company will redeem 10,50,000 preference shares of ₹10/- each at par forthwith, as per the proviso to Section 55(3) of the Act.
The company had previously disclosed on 11th February, 2025, its Board's approval for the issuance of up to 1,20,00,000 NCRPS of ₹10/- each, amounting to ₹12,00,00,000 (Rupees Twelve Crore Only), subject to approvals. The NCLT order clarifies that this further issuance of redeemable preference shares will not be treated as an increase or reduction of the company's share capital. The NCLT order was downloaded by the company on 21st July, 2026, at 05:30 p.m.
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Electrotherm (India) Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Electrotherm (India) Limited. Read the original for the full detail.