Shree Rajeshwaranand Paper Mills clears ₹12 Cr issue

What the board approved on September 19, 2026

Shree Rajeshwaranand Paper Mills Limited approved a preferential allotment of 1,20,00,000 equity shares aggregating ₹12 crore at its board meeting held on September 19, 2026. The company disclosed that the issuance represents about 94.81% of its post-allotment share capital. The board meeting, as stated in the update, was held from 4:00 PM to 8:15 PM. The company also reiterated that the issue size remains unchanged at 120 lakh shares. Each equity share has a face value of ₹10. The allotment is positioned as an equity infusion and restructuring step.

Preferential allotment replaces the August 21 proposal

The company said the revised allottee list replaces the proposal submitted on August 21, 2026. While the names of allottees were revised, the total issue size and aggregate amount remained the same at 1.2 crore shares and ₹12 crore. The update frames this as a continuation of the broader restructuring framework already communicated to exchanges. The board’s approval on September 19 effectively finalises the revised set of proposed allottees, subject to regulatory processes. The company’s disclosure also references an earlier board consideration of the restructuring proposal on July 10, 2025, indicating a long-running process.

Link to the NCLT-backed resolution plan after CIRP

Shree Rajeshwaranand Paper Mills stated that the preferential allotment is being carried out as per the approved Resolution Plan and NCLT order. The resolution plan was approved by the National Company Law Tribunal (NCLT), Ahmedabad, on November 27, 2024. The company also disclosed that a certified true copy of the order was received on November 29, 2024. In its communication, the company described the allotment as effective by virtue of the NCLT order. It added that this removes the need for additional instruments to operationalise the issuance.

Concentration of allotment among promoters and promoter group

The allotment is heavily concentrated among promoter and promoter group entities, according to the update. Promoter Pratik Kakadia is the largest single allottee with 69,96,200 shares, which the company stated is 55.27% of the issue. Ramjibhai Kakadiya was listed as the next largest allottee with 39,46,680 shares, or 31.18% of the issue. Other allocations mentioned include Hetal Kakadiya with 5,43,320 shares and Shardaben Kakadiya with 5,00,000 shares. The company also stated that the remaining shares are allotted to various promoter and public entities.

Disclosed category split in the allottee table

In the update, the company provided a category-wise split of shares allotted.

The disclosure separately reiterates that the total issue size is 1,20,00,000 shares and that the issuance represents about 94.81% of post-allotment capital.

Next procedural step: BSE in-principle listing approval

Alongside approving the preferential allotment, the board authorised management to apply to BSE Limited for in-principle approval to list the newly issued equity shares. The company said this will be done in accordance with applicable SEBI regulations and stock exchange requirements. The preferential issue will proceed only after obtaining required approvals. The company’s update positions regulatory clearance as the next milestone before the allotment is completed and the new shares are issued. Subsequent filings are expected to confirm the completion of allotment and the updated capital structure.

Trading status: shares remain suspended on BSE

The company stated that trading in its shares remains suspended on the BSE. It attributed the suspension to pending final approval for the new ISIN and the trading permissions under the reduced capital structure. This detail matters because corporate actions such as issuance under a resolution plan can require exchanges and depositories to operationalise new identifiers and permissions before normal trading resumes.

Why the 94.81% post-allotment figure is material

A post-allotment share capital impact of about 94.81% indicates a substantial change in ownership and a sharp dilution of existing shareholders. In a separate disclosure related to the preferential issue, the company said existing shareholders will retain a 5% stake post-allotment. The company has framed the transaction as part of equity infusion mandated under the resolution plan following the Corporate Insolvency Resolution Process (CIRP). The link to an NCLT-approved plan also signals that the allotment is part of a court-supervised restructuring framework rather than a routine capital raise.

Key facts at a glance

What to track from here

The immediate next step disclosed by the company is the application to BSE for in-principle listing approval for the preferential shares. Shareholders will also watch for exchange and depository actions linked to the new ISIN and permissions under the reduced capital structure, given the current suspension on BSE. The company’s subsequent exchange filings will be important for confirming the final allotment, updated shareholding pattern, and any changes required to resume trading.