Rathi Bars Ltd Board Meeting Approves Revival Steps Following Temporary Suspension of Operations

Rathi Bars Ltd Board Meeting Approves Revival Steps Following Temporary Suspension of Operations​

On April 10, 2026, the Board of Directors of Rathi Bars Limited convened a meeting at the Company's Registered Office, commencing at 3:00 P.M. and concluding at 4:15 P.M. During the session, the board considered and approved several material matters concerning the company's operational status and future direction.

Key Outcomes and Approvals​

The board meeting addressed governance matters, operational suspensions, and strategies for revival. Key actions approved by the board included:

• Temporary Suspension of Operations: The board noted, approved, and ratified the temporary suspension of manufacturing operations. This suspension was attributed to multiple factors, including income tax search proceedings beginning on December 15, 2025; the invocation of GRAP - Stage IV restrictions in the NCR by CAQM; a suo moto amendment of the Consent to Operate (CTO) by RSPCB dated January 16, 2026; and an approximate 25% increase in power tariffs by Jaipur Vidyut Vitran Nigam Limited (JVVNL). The management was authorized to safeguard company assets and take necessary steps for resuming operations.
• Revival Strategy: The board approved, in principle, initiating steps for the revival and re-commencement of operations. This includes engaging with bankers, lenders, and professional advisors. The board also noted the likelihood of a default due to liquidity constraints, noting that intimation to Stock Exchanges would be made accordingly.
• Professional Advisors and Advisors: The board approved the appointment of Ernst & Young (E&Y) as Professional Advisors, alongside Menon & Associates as Legal Advisors for matters related to revival and restructuring.
• Lender Coordination: The board authorized engagement with Axis Bank Limited, YES Bank Limited, and HDFC Bank Limited. This engagement is aimed at facilitating an e Moratorium, e Restructuring/rescheduling of existing facilities, and exploring fresh/additional credit facilities.

Financial and Operational Arrangements​

The board approved several interim arrangements to manage immediate expenses and obligations:

• Director Remuneration: An interim arrangement was approved whereby Bhiwadi Iron Private Limited will pay remuneration to Whole-time/Executive Directors on behalf of the Company, subject to future reimbursement.
• Rent and Expenses: Similarly, the board approved an interim arrangement for Bhiwadi Iron Private Limited to pay the rent for the Head Office/Registered Office and cover fixed and unavoidable expenses, including salaries, professional fees, and statutory dues, subject to reimbursement.

Board Governance Updates​

In terms of governance, the board took note of the resignation of Ms. Bharti Chitkara (ACS 72963) from the post of Company Secretary-cumCompliance Officer, effective March 22, 2026, and expressed appreciation for her service.

The board meeting also saw the election of Mr. Anurag Rathi, Managing Director, as Chairman of the meeting, and confirmation of previous board meeting minutes.

The Company's details are as follows:

Stock Price Movement​

At the close of trade, Rathi Bars Ltd settled at ₹24.20, having edged higher for the day by 3.95%. Over the session, the shares traded within a distinct range, dipping as low as ₹23.02 before touching a high of ₹24.80.

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