NCLT Approves Beaufond's ₹70 Cr Plan to Revive Kobo Biotech

The National Company Law Tribunal (NCLT) Hyderabad has approved Beaufond Industries Limited's ₹70.11 crore resolution plan to revive Kobo Biotech. This approval allows Beaufond to acquire Kobo Biotech as a functioning business, effectively saving it from potential liquidation.

Key Approval Details

The NCLT Hyderabad has sanctioned Beaufond Industries' plan, which commits ₹70.11 crore to Kobo Biotech's revival. Beaufond, a company with a net worth of ₹333.28 crore (FY2024-25), has already deposited a ₹10 crore performance security.

Background: From Distress to Revival

Kobo Biotech entered the Corporate Insolvency Resolution Process (CIRP) due to severe financial difficulties. Potential buyers submitted plans to revive the company, and the Committee of Creditors (CoC) unanimously backed Beaufond's proposal with a 100% vote on March 17, 2026.

Restructuring Under Beaufond

Under the approved plan, Kobo Biotech Limited will be acquired by Beaufond Industries. The company will undergo a significant restructuring, including a demerger of its Active Pharmaceutical Ingredients (API) business. Following these changes, Kobo Biotech is proposed to be renamed "Beaufond Limited".

Challenges and Hurdles

Despite the approval, challenges remain. The Committee of Creditors (CoC) is contesting past court orders related to asset attachments and avoidance transactions, which could complicate the process. Furthermore, the entire plan's success depends on obtaining necessary regulatory approvals.

Industry Context

Kobo Biotech's revival is being watched against the performance of established API manufacturers like Divi's Laboratories and Laurus Labs, known for their growth and expansion in the sector.

Key Figures

The approved resolution plan includes ₹70.11 crore for stakeholders, with CIRP costs estimated at ₹2.30 crore. Beaufond Industries reported a net worth of ₹333.28 crore (FY2024-25). Kobo Biotech's fair value was assessed at ₹75.52 crore, compared to its liquidation value of ₹56.73 crore.

What to Watch

Investors will be monitoring the completion of the amalgamation and demerger, the results of the CoC's legal appeals, and the acquisition of all necessary regulatory approvals for the renaming and full implementation of the plan.