Kobo Biotech Limited reported a net loss of ₹5.23 crore for the financial year ended March 31, 2025, widening from a loss of ₹4.93 crore in the previous year. The company did not generate any revenue from operations as manufacturing activities at its Solapur plant remained suspended due to regulatory and financial issues. The basic and diluted loss per share for the year was ₹2.20, compared to ₹2.07 in the prior year.

Total income for the year stood at ₹0.76 lakh, derived solely from other income, while total expenses amounted to ₹5.31 crore. The company continues to operate in a single business segment, pharmaceuticals. In view of the losses incurred, the Board did not recommend any dividend on equity shares for the year.

Corporate Insolvency Resolution Process

The Corporate Insolvency Resolution Process (CIRP) against the company, initiated on August 13, 2024, remains in effect. Ms. Namrata Amol Randeri serves as the Resolution Professional, managing the company’s affairs under the supervision of the Committee of Creditors. Subsequently, the Resolution Plan submitted by Beaufond Industries Limited was approved by the Hon’ble National Company Law Tribunal, Hyderabad Bench, vide order dated May 11, 2026. Pending implementation of the approved plan, the affairs of the company continue to be managed by the Resolution Professional.

Financial Results

Auditor and Compliance Observations

M/s. A N Shah & Associates, Chartered Accountants, audited the financial statements. The auditors noted that the company has been irregular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance, and Income Tax. Additionally, the auditors highlighted that the interest cost for the financial year was not provided for as the majority of the loans had been assigned to an asset reconstruction company. The company also delayed the payment of annual listing fees to BSE Limited.

Kobo Biotech Limited has informed stakeholders that the Hon'ble National Company Law Tribunal (NCLT), Hyderabad Bench, has approved the resolution plan submitted by Beaufond Industries Limited (the "Successful Resolution Applicant" or "RA") vide its order dated May 11, 2026, in IA (Plan) No. 01 of 2026 in CP (IB) No. 277/7/HDB/2023 under the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors had approved the resolution plan during its meeting held on March 17, 2026, following which it was submitted before the NCLT. The disclosure has been made in compliance with Regulation 30 read with Schedule III, Para A of Part A, Clause 16 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pre- and Post-CIRP Financial Position

The following table summarises the key financial metrics of the Corporate Debtor and the Successful Resolution Applicant as per their respective last audited financial statements:

The post-CIRP net worth of the Corporate Debtor shall be ascertained post-implementation of the approved resolution plan. The net worth of Beaufond Industries Limited, as per its last audited financial statements and CA-certified net worth certificate as on March 31, 2025, stood at INR 333.18 crores, which will be merged with the Corporate Debtor as part of the approved resolution plan.

Resolution Amount and Creditor Payments

The approved resolution plan entails a total resolution amount of INR 70.11 crores, payable as upfront payment within X + 60 days (where X is the NCLT Approval Date). The breakdown of payments is as follows:

The Resolution Applicant proposes to pay a total resolution plan amount of Rs. 67,81,00,000 (Rupees sixty-seven crores and eighty-one lakhs only), of which INR 67,78,00,000 (Rupees sixty-seven crores and seventy-eight lakhs only) is proposed to the Financial Creditors, plus an equity upside to the assenting financial creditors against the Converted Debt, estimated at around 3% of total shareholding on a fully-diluted basis, each in the Corporate Debtor and the Resulting Company.

Pre- and Post-Resolution Shareholding Pattern

The shareholding of the Corporate Debtor prior to implementation of the approved resolution plan is as follows:

Pursuant to the Composite Scheme involving amalgamation and demerger, the post-resolution shareholding of the Corporate Debtor shall be restructured as follows:

Upon the Amalgamation Effective Date, the Merged Entity will issue and allot new equity shares to equity shareholders of the Transferor Company in the ratio of 268.81:1, i.e., 268.81 equity shares of Rs. 10 each credited as fully paid up in the Merged Entity for every 1 equity share of Rs. 10 each fully paid up held in the Transferor Company. Upon the Demerger Effective Date, the Resulting Company will issue and allot new equity shares in the ratio of 1:1, i.e., 1 equity share of Rs. 10 each credited as fully paid up in the Resulting Company for every 1 equity share of Rs. 10 each fully paid up held in the Merged Entity.

Liability Extinguishment and Business Strategy

Pursuant to the assignment of Assigned Debt from the assenting financial creditors in favour of the Successful Resolution Applicant, and the subsequent merger of the Successful Resolution Applicant with the Corporate Debtor as contemplated under the Resolution Plan read with the Composite Scheme, all liabilities, obligations, dues, and claims of any nature whatsoever — whether admitted, crystallised, contingent, uncrystallised, secured, unsecured, known, or unknown — standing against the Corporate Debtor or its assets shall stand irrevocably extinguished, settled, and abated. No fresh or residual liabilities shall survive or be imposed on the Corporate Debtor post-implementation. The Resolution Applicant has stated that the goal is to bring the Corporate Debtor back into active operations, restore its market reputation, and make it a sustainable and profitable pharmaceutical manufacturing unit.

Governance and Minimum Public Shareholding

A duly constituted Monitoring Committee shall manage the day-to-day affairs of the Corporate Debtor until the complete hand-over of assets. The Monitoring Committee shall comprise: (i) the Resolution Professional, (ii) one nominee of the member of the Committee of Creditors having the largest voting share, and (iii) one nominee of the Resolution Applicant. Pursuant to the issue of shares as per the Resolution Plan read with the Composite Scheme, the promoter shareholding will be 57.23% and the balance will be held with public shareholders, ensuring that the shareholding held by the public exceeds the minimum threshold prescribed. No delisting plans have been approved under the resolution plan. The revised projected financials and ratios such as P/E and RONW are not known at present and will be updated post-implementation of the resolution plan.