Eco Hotels Initiates Forfeiture of 13.61 Lakh Partly Paid-up Shares

Eco Hotels and Resorts Ltd is set to forfeit 13,61,580 partly paid-up equity shares. The decision follows non-payment of first, second, and third & final call money by shareholders.

Reader Takeaway: Company reclaims unpaid shares; defaulting shareholders lose all claims and rights to these equity holdings.

What just happened

The board of directors at Eco Hotels and Resorts approved the forfeiture of 13,61,580 partly paid-up equity shares with a face value of Rs 10 each on October 13, 2026. The company officially dispatched electronic notices on October 16, 2026, and physical notices on October 17, 2026, to the concerned shareholders.

Why this matters

This action serves as a conclusion to an unresolved collection process linked to a past rights issue. Because the shareholders did not meet their payment obligations, the company is exercising its regulatory right to reclaim these shares. Once forfeited, the shares become the property of the company, and the concerned shareholders relinquish all interest, claims, and demands related to those holdings.

The backstory

The company previously issued up to 1,28,76,808 partly paid-up equity shares at Rs 15.20 per share, including a premium of Rs 5.20. While Rs 3.80 was collected at the application stage, the balance was subject to subsequent calls. Despite reminder notifications and calls closing through June 2026, a segment of shareholders failed to deposit the remaining funds, triggering this formal forfeiture process.

What changes now

Moving forward, these forfeited shares are considered the property of Eco Hotels and Resorts. The management retains the discretion to either sell, dispose of, or cancel these shares on terms they deem fit in the future, which could impact the company’s share capital structure.

What to track next

Investors should monitor future announcements regarding how the company intends to utilize or dispose of these 13.61 lakh reclaimed shares, as this could have implications for equity dilution or capital reserves.