Dharti Proteins Slashes Share Count by 95% in NCLT Restructuring

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AuthorAnanya Iyer|Published at:
Dharti Proteins Slashes Share Count by 95% in NCLT Restructuring
Overview

Dharti Proteins Limited is set to drastically cut its share capital by approximately 95%, reducing 1.02 crore shares to just 5 lakh. This move, following an NCLT-approved resolution plan, fixes February 13, 2026, as the record date. Public shareholders will see their holdings converted into a much smaller equity base, with a successful resolution applicant taking a significant stake.

📉 The Financial Deep Dive

The Numbers:
Dharti Proteins Limited (formerly Devika Proteins Limited) is undertaking a significant capital restructuring, drastically reducing its issued and paid-up equity share capital. The company's existing 1,02,77,200 Equity Shares of ₹10 each will be reduced to a mere 5,00,000 Equity Shares of ₹10 each. This represents an approximate 95% cut in the total share count.

The record date for this capital reduction has been fixed as Friday, February 13, 2026, pursuant to an NCLT Order dated November 18, 2025, approving a Resolution Plan.

Allocation of Restructured Shares:

  • Public Shareholders: Currently holding 1,00,98,748 Equity Shares, they will be allocated only 25,000 Equity Shares of ₹10 each from the new 5,00,000 share base, in proportion to their original holdings.
  • Financial Creditor (Goenka Business & Finance Limited): Is slated to receive 50,000 Equity Shares of ₹10 each, in addition to an upfront cash component as per the plan.
  • Successful Resolution Applicant: Will be allotted the majority stake of 4,25,000 equity shares out of the restructured total.

The Quality:
This is not a profitability-driven adjustment but a fundamental reorganisation of the company's capital structure, necessitated by an NCLT resolution plan. The primary 'quality' aspect here relates to the ownership structure and the viability of the company post-restructuring. The fact that a 'Successful Resolution Applicant' is taking on a substantial stake indicates a transition from financial distress.

The Grill:
While no management call transcript is available, the implications of this announcement are severe for existing retail investors. The drastic reduction in share count means substantial dilution of ownership. Questions for management would revolve around the rationale behind the specific allocation ratios, the future operational plans under the new applicant, and the prospects for the remaining public shareholders whose stakes are being significantly diminished. The absence of cash consideration for fractional shares is also a point of note for affected shareholders.

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