Post-insolvency Dharti Proteins Limited is seeking shareholder approval to raise borrowing and investment limits to Rs 5,000 crore. Currently suspended from BSE trading, the company is undergoing significant management and governance restructuring after emerging from the NCLT-led CIRP process. Shareholders are set to vote on 13 key resolutions, including debt-to-equity conversion options for leadership, as the firm works toward resuming full commercial operations.
Dharti Proteins Proposes Massive Borrowing Limits Post-Revival
- Net Loss: Rs 84.65 lakh in FY 2025-26
- Proposed Borrowing/Investment Limit: Rs 5,000 crore each
Reader Takeaway: Structural revival is underway post-NCLT, but severe losses and trading suspension remain critical hurdles for investors.
What just happened
Dharti Proteins Limited (formerly Devika Proteins) has issued its 32nd Annual General Meeting notice following its emergence from the Corporate Insolvency Resolution Process (CIRP). The company, which recently reconstituted its board, is seeking shareholder approval for major financial restructuring, including increasing its borrowing and investment powers to Rs 5,000 crore. Additionally, the company seeks to enable its Managing Director, Jatinbhai Ramanbhai Patel, to provide a Rs 100 crore unsecured loan convertible into equity.
Why this matters
The proposal to authorize borrowing and investment limits of Rs 5,000 crore is significant given the company’s current operational status. With only three employees and minimal revenue (Rs 2.97 lakh for FY26), the scale of these requested limits signals an aggressive intent to inject capital and revive the business. However, the stock remains suspended from BSE trading, pending final approvals for new securities issued during the restructuring process.
Risks to watch
The company carries auditor qualifications regarding non-compliances that occurred during the CIRP period. While the new management has clarified it is not liable for pre-revival lapses, the underlying regulatory history requires caution. Furthermore, the firm reported a widened net loss of Rs 84.65 lakh, reflecting the heavy burden of transition and limited operational activity.
What changes now
The company has completed a full capital restructuring, which involved the cancellation of old promoter shares and the issuance of new equity to incoming promoters and creditors. The upcoming AGM will also see the adoption of a new Memorandum and Articles of Association to align the company with the Companies Act, 2013, marking a formal break from its previous corporate structure.