Electrotherm (India) Limited has filed a regulatory disclosure regarding the outcome of its petition to the National Company Law Tribunal (NCLT), Ahmedabad Bench, concerning the issuance of preference shares under Section 55(3) of the Companies Act, 2013.
NCLT Order Details
The Hon'ble NCLT, Ahmedabad Bench, issued an order on 21st July, 2026, allowing the company's petition. The order specifically permits:
- Issuance and allotment of 1,09,50,000 (One Crore Nine Lakhs Fifty Thousand) 6% Non-Cumulative Redeemable Preference Shares of ₹10 each to five existing preference shareholders (excluding Ahmedabad Aviation and Aeronautics Limited). These shares will have the same terms and conditions as the original issue and will be redeemable not earlier than two years and not later than twenty years from the date of allotment.
- Upon this issuance and allotment, the existing unredeemed preference shares corresponding to this amount (₹12,00,00,000 or Twelve Crore Rupees) will be deemed to have been redeemed as per Section 55(3) of the Companies Act, 2013.
- Immediate redemption at par of 10,50,000 preference shares of ₹10 each held by Ahmedabad Aviation and Aeronautics Limited, the non-consenting shareholder, as required by the proviso to Section 55(3) of the Companies Act, 2013.
Capital Structure Impact
The NCLT order explicitly states that this issuance of further redeemable preference shares shall not be treated as an increase or reduction of the company's share capital.
Additional Information
The company downloaded the copy of the NCLT order on 21st July, 2026, at 05:30 p.m. The order is available on the NCLT website.