Shree Rajeshwaranand Paper Mills: ₹12 Cr Issue 2026

What the board approved on August 21, 2026

Shree Rajeshwaranand Paper Mills Limited has approved a preferential allotment of equity shares amounting to ₹12 crore. The decision was taken by the company’s board on August 21, 2026. The preferential issue is positioned as part of the company’s court-approved resolution plan. The stated objective is to restructure the company’s capital after the completion of the Corporate Insolvency Resolution Process (CIRP). The company also indicated that the allotment is effective by virtue of the National Company Law Tribunal (NCLT) order, and it does not require further instruments.

Size of the equity allotment and share details

As per the approval, the board authorised the issuance of 1,20,00,000 equity shares. Each equity share has a face value of ₹10. The company described this step as meeting the equity infusion requirement mandated under the resolution plan. The resolution plan itself was approved by the NCLT, Ahmedabad. The NCLT order was pronounced on November 27, 2024, and the certified true copy of the order was received on November 29, 2024.

Link to CIRP and the NCLT-approved resolution plan

The preferential allotment is tied directly to the resolution plan implemented after the CIRP. The resolution plan was submitted by Mercury Terra Firma, described as the Successful Resolution Applicant (SRA). The company’s disclosure connects the current equity issue to the plan’s implementation requirements. By framing the preferential allotment as fulfilment of the plan’s equity infusion condition, the company positions the fund-raise as a compliance step rather than a standalone capital raising event.

Post-allotment shareholding: public float and listing compliance

Post-allotment, the company stated that new investors and affiliates will hold approximately 94.81% of the capital. Existing shareholders will retain a 5% stake. The company added that this structure ensures public shareholding remains above the 5% threshold required for listing compliance. This point is central for listed companies because minimum public shareholding is tied to ongoing listing status and market access.

Allottee-wise break-up of the preferential issue

The company provided the allottee-wise distribution of shares, amounts and post-allotment percentage holding. The table below reproduces the figures as disclosed.

Regulatory steps: BSE in-principle approval and compliance obligations

Alongside the preferential issue approval, the board also cleared an application to the Bombay Stock Exchange (BSE) for in-principle approval to list the newly issued equity shares. The company stated it will comply with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Companies Act, 2013. The disclosures also note that the allotment is effective due to the NCLT order, which the company says removes the need for additional instruments to operationalise the issuance.

Other board actions: quarterly results taken on record

The board approved and took on record the un-audited standalone financial results for the quarter ended June 30, 2026. The disclosure provided does not include the financial line items or performance figures, but it confirms that the quarterly results were considered at the same board meeting cycle. Separately, the company informed BSE that a board meeting was scheduled on May 29, 2025 to consider and approve audited financial results for the quarter and year ended March 31, 2025, and to consider reduction of share capital, along with other business.

Governance changes after the resolution plan

As part of resolution plan implementation, the disclosure notes that the Implementation and Monitoring Committee, in its meeting held on January 13, 2025, appointed new board members effective that date. The individuals named were Mr. Bhavesh Javerbhai Vekaria as Executive Director, Mr. Piyush Mundra as Non-Executive Director, Mr. Sunil Kumar Kabra as Independent/Non-Executive Director, and Ms. Swati Kothari as Independent/Non-Executive Director. These changes were described in the context of implementing the NCLT-approved resolution plan.

Previous fund-raising references in company disclosures

The text also references earlier board approvals related to preferential issues of convertible equity warrants. On February 19, 2025, the board approved raising funds aggregating up to INR 1,50,00,000 by issuing up to 60,00,000 warrants, each convertible into one fully paid-up equity share, at a price of INR 2.5 per warrant, in a non-promoter, public category issue. Another disclosure dated 31.07.2025 mentions the allotment of 6,00,000 fully convertible warrants on a preferential basis, at an issue price of ₹61 per warrant (including a share premium of ₹51), aggregating to ₹3,66,00,000.

Key dates and decision points

The sequence below summarises the dated events explicitly mentioned in the disclosure.

Why this matters for shareholders and the listed entity

The preferential allotment is structured to meet equity infusion terms under a resolution plan approved by the NCLT. For investors tracking the company, two points stand out in the disclosure: the post-allotment holding of about 94.81% for new investors and affiliates, and the 5% retained by existing shareholders. The company also highlighted that the resulting public shareholding remains above the 5% threshold required for listing compliance. On the regulatory side, the company has initiated the step of seeking BSE in-principle approval for listing the newly issued equity shares and has cited the applicable compliance framework under SEBI LODR and the Companies Act.

Conclusion

Shree Rajeshwaranand Paper Mills’ ₹12 crore preferential equity issue, approved on August 21, 2026, is presented as an implementation step under its NCLT-approved resolution plan. The company has disclosed the share allotment structure, the expected post-issue holding pattern, and its plan to seek BSE in-principle approval for listing the new shares. The next procedural milestone described is the exchange approval and subsequent listing of the newly issued equity shares, in line with the stated regulatory framework.