NCLT Sanctions Electrotherm's Preference Share Issuance and Allotment
Electrotherm (India) Limited has successfully received approval from the National Company Law Tribunal (NCLT), Ahmedabad Bench, regarding the issuance and allotment of Non-Cumulative Redeemable Preference Shares (NCRPS). The order, dated July 21, 2026, dictates the terms for issuing shares to existing preference shareholders and mandates a specific redemption action.The NCLT granted permission to Electrotherm under Section 55(3) of the Companies Act, 2013, allowing the company to proceed with the issuance and allotment of NCRPS of Rs. 10 each. This action relates to an initiative originally intended to raise funds equivalent to unredeemed preference shares totaling Rs. 12 Crore (Rupees Twelve Crore Only).
As per the NCLT's decision, a total of 1,09,50,000 Non-Cumulative Redeemable Preference Shares were allotted at a rate of Rs. 10 each to five existing preference shareholders, excluding Ahmedabad Aviation and Aeronautics Limited. The shares carry a 6% coupon, are redeemable not earlier than two years and not later than twenty years from the date of allotment. Upon this issuance and allotment, the corresponding unredeemed preference shares were deemed redeemed.
The order also outlined specific steps concerning Ahmedabad Aviation and Aeronautics Limited, which is noted as a non-consenting preference shareholder. In compliance with the NCLT ruling, Electrotherm must forthwith redeem 10,50,000 preference shares of Rs. 10 each at par for this particular shareholder.
The issuance of these further redeemable preference shares pursuant to the NCLT order was clarified by the company as not constituting an increase or a reduction of its share capital.
ELECTHERM Stock Price Movement
Electrotherm (India) Limited shed value on Wednesday, with shares slipping 2.16% to settle at ₹1030. The stock registered a trading volume of 10,224 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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