Dharti Proteins Plans Massive Capital Cut, Promoters Lose All Shares

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AuthorAarav Shah|Published at:
Dharti Proteins Plans Massive Capital Cut, Promoters Lose All Shares
Overview

Dharti Proteins Limited (formerly Devika Proteins) will drastically cut its paid-up share capital as per an NCLT-approved Resolution Plan. The plan, scheduled for Board consideration on Feb 13, 2026, will see existing promoter holdings completely extinguished. New shares will be issued to a successful resolution applicant, public shareholders, and a financial creditor, reshaping the company's ownership structure.

📉 The Financial Deep Dive

The National Company Law Tribunal (NCLT) Ahmedabad bench has approved a significant Resolution Plan for Dharti Proteins Limited (formerly Devika Proteins Limited), mandating a drastic capital reduction. This corporate action is slated for consideration at the Board of Directors meeting on February 13, 2026. The core of the approved plan involves reducing the company's paid-up share capital from 1,02,77,200 Equity shares of Rs. 10 each to a mere 5,00,000 Equity shares of Rs. 10 each. This restructuring will result in the complete cancellation and extinguishment of the existing promoters' 100% shareholding. Subsequently, new equity shares will be issued: 4,25,000 to the Successful Resolution Applicant (SRA), Mr. Jatinbhai Ramanbhai Patel, and its promoter group; 25,000 to existing public shareholders pro-rata; and 50,000 to Goenka Business & Finance Limited, a Secured Financial Creditor. Post-reduction, the total paid-up share capital will be Rs. 50,00,000.

🚩 Risks & Outlook

The primary 'risk' or rather, the stark reality for existing shareholders, especially promoters, is the complete loss of their stake. For public shareholders, their proportional holding remains, but the overall value and future prospects are now tied to the new ownership and the success of the Resolution Applicant. The outlook is that of a company emerging from insolvency under new stewardship. Investors should closely monitor the execution of the new management's strategy and the company's operational performance in the coming quarters following this ownership change.

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