Shree Rajeshwaranand Paper Mills: ₹12 Cr Issue 2026

Board clears ₹12 crore preferential allotment

Shree Rajeshwaranand Paper Mills Limited has approved a preferential allotment of equity shares aggregating to ₹12 crore. The decision was taken at a board meeting held on September 19, 2026, according to the disclosure shared in the update. The company approved issuance of 1,20,00,000 equity shares, keeping the total issue size unchanged at 120 lakh shares. The company also stated the face value of each equity share is ₹10.

The preferential issue is positioned as an equity infusion and capital restructuring step. The company linked the action to a resolution plan framework and related regulatory steps. The approval also comes with downstream actions required for listing and trading of the new shares.

How the issue changes the shareholding

The company said the issuance represents about 94.81% of the post-allotment share capital. That implies a sharp dilution for the pre-issue shareholding base. In a separate highlight disclosed alongside the announcement, the company stated that existing shareholders would retain about a 5% stake after the allotment.

The disclosures also note that the structure is intended to keep public shareholding above the 5% threshold referenced for listing compliance. The allotment is described as primarily going to promoter group entities. A category split in the update shows promoter group allotment forming the bulk of the issuance.

Preferential issue tied to CIRP and NCLT-approved plan

The company has referred to the Corporate Insolvency Resolution Process (CIRP) in its disclosures. It stated the preferential allotment is being carried out as per the approved Resolution Plan and NCLT order. The resolution plan, as cited in the update, was approved by the National Company Law Tribunal (NCLT), Ahmedabad, on November 27, 2024.

The company also described the allotment as effective by virtue of the NCLT order, and said this removes the need for additional instruments to operationalise the issuance. The board action is presented as part of implementing the court-approved plan after CIRP.

BSE in-principle approval and SEBI compliance steps

Alongside approving the allotment, the board authorised management to apply to the Bombay Stock Exchange for in-principle approval to list the newly issued equity shares. The disclosure references compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Companies Act, 2013.

The company’s shares remain suspended on the BSE, as stated in the update. The suspension is pending final approval for the new ISIN and the trading permissions under the reduced capital structure. These steps are typically required to enable trading after a capital restructuring and issuance of new securities.

Revised allottee list replaces earlier proposal

The company said the revised allottee list replaces the proposal submitted on August 21, 2026. While multiple references appear in the update to August 21, 2026 and September 19, 2026, the disclosure indicates the list and approvals have been updated over time. The total issue size remains unchanged at 120 lakh shares.

Separate allotment figures were also mentioned for key recipients in the update, including an earlier reference to Pratik Kakadia receiving 69,96,200 shares and Ramjibhai Kakadiya receiving 39,46,680 shares. The company additionally provided an allottee-wise table of shares, amount and post-allotment percentage, reproduced below as disclosed.

Key allotments and post-issue stakes

The company’s disclosed allottee-wise table shows Pratik Kakadia as the largest allottee with 65,00,000 shares and a post-allotment holding of 51.35%. Ramjibhai Kakadia is shown with 38,13,810 shares and a post-allotment holding of 30.13%. Other allocations include Hetal Kakadiya (5,43,320 shares), Shardaben Kakadiya (5,00,000 shares), Vinod Kabra (6,32,370 shares), and Others (1,07,090 shares).

The total in the table is 1,20,00,000 shares, amounting to ₹12.00 crore, representing 94.81% post-allotment.

Snapshot of the main disclosed facts

The company’s updates also mention that the equity infusion and restructuring proposal had been considered earlier by the board on July 10, 2025. In addition, the company disclosed that it published audited financial results for the quarter and year ended March 31, 2026 in Free Press Gujarat and LokMitra on June 3, 2026. Another line item in the update indicates the board approved the Board of Directors’ Report for the financial year 2025-2026.

Market impact and what investors should track

The disclosure’s immediate market relevance is tied to the size of dilution and the timeline for resumption of trading on the BSE. With trading currently suspended pending new ISIN and permissions under the reduced capital structure, investors are likely to track exchange communications on the listing of the new shares.

The company has stated it will seek in-principle approval from the BSE for listing the newly issued shares and will comply with SEBI LODR and the Companies Act. The preferential allotment is framed as a required equity infusion step under the NCLT-approved resolution plan. Any next steps, as indicated in the update, relate to regulatory approvals and completion of listing formalities.

Conclusion

Shree Rajeshwaranand Paper Mills’ board approval for a ₹12 crore preferential allotment of 1.2 crore shares marks a key implementation step under its NCLT-backed resolution plan following CIRP. The company has also moved to seek BSE in-principle approval for listing the new shares and has flagged that trading remains suspended until the new ISIN and related permissions are granted. The next disclosed milestones are tied to exchange approvals and the completion of processes required to enable trading under the revised capital structure.