NCLT Indore Bench Approves Modification to CMM Infraprojects' Resolution Plan Implementation, Extends Timeline
The National Company Law Tribunal (NCLT) Indore Bench has permitted a modification to the implementation mechanism of the Approved Resolution Plan for CMM Infraprojects Limited. The Tribunal allowed the company to apply its approved conversion ratio to the actual secondary market public shareholding, resulting in revised post-implementation percentages while maintaining all commercial and financial commitments of the original plan.The decision was made by the NCLT Indore Bench following an application seeking directions related to the implementation of the Resolution Plan, which was initially approved on November 11, 2024. The Tribunal granted permission for this necessary modification aimed at facilitating effective completion of the restructured capital.
Shareholding Structure Revised
The modification addresses the change in public shareholding that occurred after the original plan approval, as shares were sold by promoters and promoter group members in secondary market transactions. The core commercial framework, including financial commitments and stakeholder treatment, remains unchanged across both scenarios.The NCLT provided a detailed comparison of the two structures:
| Particulars | Approved Resolution Plan | Present Modification Sought |
|---|---|---|
| Public shares considered | 1,00,50,000 | 1,55,10,000 |
| Conversion ratio | 0.016:1 | Unchanged |
| Public shares after restructuring | 1,60,800 | 2,48,160 |
| Public shareholding | 5% | 7.50% |
| SRA shareholding | 95% | 92.50% |
| Financial commitments | No change | No change |
| Stakeholder treatment | No change | No change |
The Tribunal confirmed that the modification, which is confined solely to the mechanism of share capital restructuring, ensures compliance with applicable securities law requirements and does not alter the commercial essence or financial architecture of the approved Resolution Plan.
Implementation Period Extended
In addition to approving the revised implementation mechanism for the public shareholding, the NCLT Indore Bench granted a request for time extension. The Court observed that the delay in implementing the plan was primarily due to regulatory and procedural issues related to reconstituting the share capital and obtaining necessary approvals from the stock exchange.Accordingly, the period for the full implementation of the Resolution Plan has been extended by a further three months from the date of the order. The Tribunal clarified that this permission is granted only to facilitate the completion of the approved plan and should not be construed as an alteration of its financial or commercial terms.
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