Shivom Investment Executes NCLT Resolution Plan

Q4 FY25 Net Profit stood at Rs 3.70 crore; Q1 FY26 Net Profit was Rs 0.79 crore.

Reader Takeaway: Revival is underway with new promoter control, but trading remains suspended pending regulatory approval and depository admission.

What just happened

Shivom Investment & Consultancy has announced its financial results for the quarters ending March 31, 2025, and June 30, 2025, following the August 18, 2025, NCLT approval of its resolution plan. The company is undergoing a comprehensive corporate revival, which includes a significant overhaul of its capital structure and debt obligations.

Capital Restructuring Details

As part of the court-approved plan, the existing equity share capital of 6,99,51,325 shares has been cancelled. Public shareholders are entitled to a consolidation of 1 share for every 1,000 previously held. To facilitate the revival, 3,00,000 shares are being allotted to unsecured creditors, and 6,000,000 fresh shares are being subscribed to by the new promoter group. Furthermore, the company will issue Rs 21.46 crore in Compulsorily Convertible Debentures (CCDs) to settle outstanding debts.

Risks to watch

The primary concern for current shareholders is that equity shares remain suspended from trading. While an application for revocation was submitted on April 16, 2025, the timeline for resumption remains uncertain. Additionally, shares are currently issued in physical form as they have not yet been admitted to the central depository system.

Context

The post-restructuring shareholding pattern will see the new Resolution Applicant/promoter group control approximately 94.99% of the paid-up equity capital. Financial performance shows a marked improvement, with the company reporting a profit of Rs 3.70 crore in the March quarter compared to a loss in the corresponding period of the previous year.