Winsome Yarns: NCLT Approves Resolution Plan, Company to Continue as Going Concern
Winsome Yarns Limited's Resolution Plan has been approved by the NCLT. Pre-CIRP net-worth was ₹(40,897.33) Lakh. Existing equity will be written down to 5%, with the Resolution Applicant, Mohini Health & Hygiene Limited, infusing fresh equity for 95% ownership. Total funds infused will be ₹162.9 Crores.
The approval of the resolution plan fundamentally alters the company's financial structure, ownership, and operational future, indicating a high impact on stakeholders.
The NCLT's approval of the resolution plan signifies a positive step towards the company's revival and continuation as a going concern, extinguishing previous liabilities and restructuring its capital.
Winsome Yarns Limited has announced the approval of its Resolution Plan by the Hon'ble National Company Law Tribunal (NCLT), Chandigarh Bench, on April 16, 2026. This approval marks a significant step in the Corporate Insolvency Resolution Process (CIRP).
As per the approved plan, the company's pre-CIRP net-worth was reported as ₹(40,897.33) Lakh. Post-CIRP net-worth will be determined after the plan's implementation. The plan ensures that upon settlement of liabilities to financial creditors, all assets of Winsome Yarns will be released from encumbrances and vest with the company under the complete control of the Resolution Applicant. Importantly, all pre-CIRP liabilities stand extinguished upon the NCLT's approval, and the company will continue as a going concern with no additional material liabilities imposed beyond those in the plan.
The shareholding structure will undergo significant changes. The existing equity share capital will be written down to 5% for existing shareholders, resulting in a post-restructuring paid-up capital of ₹2,63,15,790. The Resolution Applicant, Mohini Health & Hygiene Limited, or its Special Purpose Vehicle, will infuse fresh equity representing 95% of the total equity. The company's listing on NSE and BSE will continue, subject to necessary capital adjustments.
Funding for the plan includes ₹2.5 Crores for unpaid CIRP costs, ₹137 Crores for Secured Financial Creditors, ₹10 Lakhs plus ₹250 Lakhs for statutory dues (including EPFO), ₹30 Lakhs for workmen and employees, ₹50 Lakhs for other operational creditors, and ₹20 Crores for overhaulment and working capital expenditure. The total funds infused amount to ₹162.9 Crores, including CIRP costs. The Resolution Applicant has already deposited a Performance Security of ₹20.20 Crores and has a Letter of Sanction for a loan of ₹154 Crores from Union Bank of India.
Mohini Health & Hygiene Limited, the Resolution Applicant, is engaged in manufacturing and export of surgical and hygiene products. The company's directors and KMP possess relevant experience, and they believe the business prospects are bright, aiming for an operational turnaround and value maximization for Winsome Yarns.
What to do with a filing like this
Winsome Yarns Limited filed this with the NSE as a statutory disclosure, categorised under corporate insolvency resolution process. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Winsome Yarns Limited. Read the original for the full detail.