Majestic Research Services and Solutions has executed a massive capital restructuring following NCLT approval. The firm has extinguished all existing promoter and public shareholdings, replacing them with a significantly smaller base of new equity. Investors should note this process effectively wipes out previous shareholdings as part of the company's insolvency resolution.
Majestic Research Executes NCLT Resolution Plan
Existing shares extinguished; new equity allotted to settle insolvency.
Reader Takeaway: Existing shareholders face total capital erosion; company emerges from NCLT-led restructuring process.
What just happened
Majestic Research Services and Solutions Limited has officially implemented its NCLT-approved resolution plan from June 2025. The board has extinguished 5,136,992 promoter shares and 4,889,008 public shares without consideration. These actions were finalized following the company’s insolvency proceedings.
Why this matters
The restructuring results in the total cancellation of existing equity, essentially zeroing out the value for previous investors. A new, smaller base of 20,650 shares was issued to original public shareholders, while 392,350 shares were allotted via a preferential basis to a group of five individuals including Parth Shaileshbhai Patel and Rashmikaben S Patel.
The backstory
The company entered the insolvency process under the Insolvency and Bankruptcy Code (IBC) due to financial distress. The current action represents the final stage of the court-sanctioned plan to reorganize the capital structure and settle outstanding debts.
What changes now
The company’s previous ownership structure has been replaced. The total share count now reflects only the new allocations, and the company must now look toward operational stability under its new capital arrangement.
Risks to watch
Investors should be aware that the extinguishment of shares without consideration is a standard but severe outcome in IBC cases. This process highlights the extreme risks associated with companies undergoing prolonged insolvency resolution.