Shivom Investment & Consultancy has officially exited its insolvency process following NCLT approval. The company reported a net profit of Rs 3.70 crore for FY25, a turnaround from its previous loss. Investors should note a major capital restructuring involving a 1:1,000 share consolidation and issuance of fresh equity to the new promoter group. Trading in the company's shares remains suspended on the exchange, with a revocation application currently under regulatory review.
Shivom Investment & Consultancy Exits Insolvency Process
Revenue: Rs 3.84 crore (FY25); Net Profit: Rs 3.70 crore (FY25).
Reader Takeaway: The company has turned profitable post-insolvency, but extreme share dilution and trading suspension pose significant liquidity risks.
What just happened
Shivom Investment & Consultancy has concluded its Corporate Insolvency Resolution Process (CIRP) following an NCLT order dated August 18, 2025. The Board of Directors met on September 12, 2026, to approve audited FY25 results and Q1 FY26 unaudited financials. The company reported a net profit of Rs 3.70 crore for FY25 against a loss of Rs 0.49 crore in the prior period. Q1 FY26 revenue stood at Rs 0.85 crore with a net profit of Rs 0.79 crore.
Why this matters
The company is now under the control of a new Resolution Applicant. As part of the NCLT-approved resolution plan, the company has undertaken a massive capital restructuring. Existing equity has been cancelled, and public shareholders will be issued 1 new equity share for every 1,000 shares previously held. Additionally, 60 lakh fresh shares are being allotted to the promoter group, and Rs 21.46 crore in zero-percent Compulsorily Convertible Debentures (CCDs) are being issued to unsecured creditors.
Risks to watch
The primary risk for investors is the current suspension of trading on the stock exchange. While the company filed for revocation on April 16, 2025, the application is still under process. Furthermore, the 1:1,000 consolidation represents significant dilution for existing retail shareholders. Because the new shares have not yet received an ISIN, they are currently held in physical form, complicating any immediate liquidation or exit strategy.
What to track next
Investors should closely monitor the BSE's decision regarding the revocation of the trading suspension. Until the suspension is lifted, shareholders have no mechanism to trade their holdings. Additionally, the conversion schedule of the issued CCDs will be a factor in future equity dilution.