McNally Bharat resumes trading with 95% shares locked

McNally Bharat Engineering Company Limited resumed share trading on 1 September 2026 after BSE and NSE approvals, but 95% of its equity, comprising 90% promoter and 5% financial-creditor holdings, is locked for one year from trading permission under exchange directions.

How did McNally Bharat regain trading permission?

McNally Bharat regained trading permission after BSE Limited and the National Stock Exchange of India Limited approved its final applications simultaneously on 29 August 2026, with trading effective from 1 September 2026. The company filed its final application with BSE on 2 July 2026 and with NSE on 3 July 2026 after receiving depository confirmations for corporate actions and capital reconciliation from its registrar and share transfer agent.

The listing process first required settlement of standard operating procedure fines related to corporate-governance non-compliance through 31 December 2025. BSE determined a net fine of Rs 11.69 lakh after a partial waiver granted on 24 December 2025, while NSE determined Rs 16.37 lakh after a partial waiver on 6 February 2026; McNally Bharat paid Rs 10.94 lakh on 13 February 2026 and Rs 5.43 lakh on 19 February 2026.

BSE issued in-principle listing approval on 13 January 2026 and revised that approval on 16 March 2026 for the total shares comprising paid-up capital. NSE granted approvals in three stages between 10 March 2026 and 24 June 2026, before McNally Bharat completed extinguishment, capital reduction, credit of shares and the associated lock-in actions.

The 29 August 2026 trading approval came after these listing approvals and after the corporate-action confirmations, rather than immediately after BSE's January 2026 in-principle approval. McNally Bharat described the final application process as covering the full capital reconciliation following the resolution-plan related share actions.

Which McNally Bharat shares are locked after trading resumed?

McNally Bharat has 95% of its shares locked in for one year from 1 September 2026, consisting of the full 90% promoter holding and the 5% public holding allotted to financial creditors. The company said the restriction follows Regulation 167 of the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018, and specific directions issued by the stock exchanges.

The locked holdings belong to two separate holder groups created through the resolution-plan capital actions. The promoter block represents 90% of the equity, while financial creditors hold 5% in the public category, producing the 95% combined holding identified in the disclosure.

Trading permission and share transferability therefore have different outcomes in this case. McNally Bharat identifies 1 September 2026, the effective date of trading permission, as the start of the one-year lock-in rather than NSE's 24 April 2026 or 24 June 2026 listing approval dates.

Can McNally Bharat transfer the creditors' 5% shares during lock-in?

McNally Bharat has sought exchange permission to transfer the financial creditors' 5% shareholding to the promoter, the successful resolution applicant, during the lock-in period. It applied to NSE on 1 October 2026 and to BSE on 14 October 2026, and the company said both applications were under consideration.

The proposed transfer is linked to the National Company Law Tribunal's 10 June 2026 order directing the successful resolution applicant to comply with the resolution plan by buying back the creditors' 5% equity shares. The stated consideration is Rs 30 crore, payable forthwith with interest at the prevailing rate calculated from 17 February 2026.

McNally Bharat said it had sent formal offer letters to the financial creditors while awaiting their consent for the buyback process. The financial creditors subsequently filed a contempt application under Section 425 of the Companies Act, 2013 and Rule 11 of the National Company Law Tribunal Rules, 2016, while the company accounted for interest under the order through 30 September 2026.

The company said payment of Rs 30 crore plus interest and transfer of the 5% shares remain subject to required regulatory approvals. Its disclosure reports arrangements for payment and pending applications, not completion of either the buyback or the share transfer.

What other resolution-plan matters remain open for McNally Bharat?

McNally Bharat has filed a recall application against a 12 June 2026 National Company Law Tribunal order on adjustments involving three joint-venture entities. The order held that Rs 15.18 crore of adjustments, out of Rs 41.4909 crore in total adjustments toward security deposits, were preferential transactions under Section 43 of the Insolvency and Bankruptcy Code, 2016.

Based on legal advice obtained during the quarter ended 30 June 2026, McNally Bharat recognised an exceptional-items provision of Rs 15.18 crore and interest of Rs 7.1664 crore through 30 September 2026. The order directed the joint ventures to repay Rs 15.18 crore within 60 days of receiving the order, with interest at 9% a year, for remittance to the committee of creditors under the resolution plan.

The company also reported bank balances of Rs 6.4483 crore and fixed deposits of Rs 2.0621 crore as at 30 September 2026, while saying complete records for certain pre-Corporate Insolvency Resolution Process accounts, deposits and facilities were not fully available at handover. It is obtaining information from banks and financial institutions to assess the status and ownership of these balances.

McNally Bharat said Rs 2.338 crore of unpaid balances had been earmarked and parked in a bank account dedicated to resolution-plan implementation but were not reflected in the financial results. Management said the account had been operated by the erstwhile resolution professional, while Rs 34.24 lakh remained unsettled because of compliance-related issues.

Conclusion

McNally Bharat completed the listing and corporate-action sequence that enabled trading from 1 September 2026, following fine settlements, staged NSE approvals and final exchange permission on 29 August 2026. The key qualification is that the promoter's 90% holding and the financial creditors' 5% holding remain subject to the one-year lock-in.

The next disclosed matter to watch is the exchanges' decision on applications filed with NSE on 1 October 2026 and BSE on 14 October 2026 to allow transfer of the creditors' 5% stake during lock-in. McNally Bharat also needs to arrange the Rs 30 crore creditor-share settlement plus interest under the 10 June 2026 tribunal order, subject to the required approvals.