Royal Cushion Vinyl Products has finalized its merger with Royal Spinwell and Developers, allotting over 4.1 million equity shares and 8.4 million preference shares. This move increases the company's paid-up equity capital to Rs 40.71 crore, marking the effective conclusion of the NCLT-sanctioned scheme of arrangement.
Royal Cushion Vinyl Products Finalizes Merger Integration
Equity Shares Issued: 4,117,160 | NCRPS Issued: 8,499,592
Reader Takeaway: The merger consolidation increases paid-up capital while introducing a fixed-income preference obligation via new NCRPS instruments.
What just happened
Royal Cushion Vinyl Products Ltd has officially executed the allotment of 4,117,160 equity shares and 8,499,592 Non-Convertible Redeemable Preference Shares (NCRPS) to shareholders of Royal Spinwell and Developers Private Limited (RSDPL). This action follows the NCLT Mumbai Bench order dated July 28, 2026, which sanctioned the merger, and the subsequent effective date of August 30, 2026.
Why this matters
The allotment marks the final procedural milestone in absorbing RSDPL. For investors, this increases the total paid-up equity share capital from Rs 36.59 crore to Rs 40.71 crore. The new equity shares rank pari passu with existing holdings, meaning they carry equal rights and benefits.
Terms of NCRPS
The newly issued 8.49 million NCRPS are unlisted and carry a 6% per annum preferential dividend. These instruments are redeemable within 20 years at the request of either the holder or the company. While they do not provide voting rights for general business operations, they carry priority status for capital repayment and dividend distribution in the event of liquidation.
What to track next
Shareholders should monitor the company's annual financial reports to account for the impact of the 6% dividend obligation on the NCRPS on the company's net distributable cash flows moving forward.