MHHL Board Approves Winsome Yarns Acquisition Under NCLT Resolution Plan
Mohini Health & Hygiene Limited's Board of Directors convened on May 01, 2026, to approve the implementation of the Resolution Plan for acquiring Winsome Yarns Limited, following NCLT approval dated April 16, 2026. The total admitted claims of Winsome Yarns amount to approximately ₹1,926.88 Crore, with the Resolution Plan requiring total payments of ₹162.90 Crore to various creditors. The acquisition will be executed through a Special Purpose Vehicle (SPV) where MHHL holds 51% equity stake, with the SPV acquiring 95% control of Winsome Yarns Limited. The implementation timeline includes share allotment by May 31, 2026, and full transfer by July 15, 2026. The Board also approved the appointment of nominee directors, funding arrangements including a ₹154.00 Crore term loan from Union Bank of India, and reappointed auditors for FY 2026-27.
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Mohini Health & Hygiene Limited's Board of Directors convened on May 01, 2026, at the company's office in Indore, Madhya Pradesh, to deliberate on key strategic initiatives. The primary agenda item was the implementation of the Resolution Plan for the acquisition of Winsome Yarns Limited, which had received approval from the Hon'ble NCLT, Chandigarh Bench, through an order dated April 16, 2026.
Resolution Plan Details
The Board noted and recorded the NCLT order approving the Resolution Plan submitted by the company for Winsome Yarns Limited. The total admitted claims of Winsome Yarns Limited amount to approximately ₹1,926.88 Crore, comprising financial creditors' claims of ₹1,894.69 Crore, operational creditors' claims of ₹20.00 Crore, and other claims of ₹12.19 Crore. Under the Resolution Plan, the total payment to be made is ₹162.90 Crore, representing a significant haircut for creditors.
| Payment Category | Amount (₹ Crore) |
|---|---|
| Secured Financial Creditors (6 banks): | 137.00 |
| Operational Creditors: | 0.50 |
| Workmen & Employees: | 0.30 |
| EPFO: | Up to 2.50 |
| Govt/Statutory Dues: | 0.10 |
| CIRP Cost: | Up to 2.50 |
| Overhauling & Working Capital: | 20.00 |
| Total: | 162.90 |
Implementation Structure and Timeline
The acquisition will be executed through a Special Purpose Vehicle (SPV) incorporated as a subsidiary of MHHL. The SPV will hold 95% of the post-allotment paid-up share capital of Winsome Yarns Limited, with existing public shareholders retaining 5%. MHHL holds a 51% equity stake in the SPV, while other stakeholders include Zenith Infra Realty LLP (25%), Rony Vincent Braganza (8%), Shrivika Enterprise (8%), and Fortune Ventures & Holdings (8%).
The implementation follows a structured timeline with the transfer date scheduled for July 15, 2026 (X + 90 Days from NCLT Approval Date). Fresh equity shares will be allotted to the SPV constituting 95% of post-allotment paid-up share capital within X+45 Days (by May 31, 2026). Upon payment of CIRP costs within X+30 Days (by May 16, 2026), the existing Board of Directors of Winsome Yarns Limited shall stand reconstituted.
Funding Sources and Governance
The funds for the Resolution Plan will be sourced from internal funds and accruals of MHHL, a term loan of ₹154.00 Crore from Union Bank of India sanctioned in favour of Winsome Yarns Limited, and equity or debt raised by MHHL or the SPV. The company has approved an inter-corporate loan to the SPV at arm's length interest rate, repayable from dividend or distribution receipts from Winsome Yarns Limited.
| Monitoring Committee Members | Designation |
|---|---|
| Mr. Anil Kohli / ARCK Resolution Professionals LLP | Insolvency Professional / Monitoring Professional (Chairperson) |
| Ms. Shivangi Varma / Mr. Varun Shah | Representative of CoC (Edelweiss Asset Reconstruction Company Limited) |
| Mr. Avnish Bansal and Adv. Rohit Dubey | Representative of Successful Resolution Applicant (MHHL) |
The Board authorized the appointment of company representatives to the Monitoring Committee of Winsome Yarns Limited and approved the nomination of directors to the Winsome Yarns Limited Board upon implementation of the Resolution Plan. The company also approved necessary filings with SEBI and stock exchanges, including an application for exemption from open offer obligations under Regulation 10(1)(d) of SEBI (SAST) Regulations, 2011.
Additional Board Decisions
In addition to the acquisition-related approvals, the Board reappointed M/s Neelam Binjwa as Secretarial Auditor for the Financial Year 2026-27 and appointed M/s Jain S P & Co. as Internal Auditor for the same period, following the completion of tenure of M/s Ashok Chhajed & Associates. The Board meeting commenced at 3:00 PM and concluded at 7:10 PM on May 01, 2026.
Winsome Yarns Limited is engaged in the business of manufacturing cotton yarn and knitted fabrics with units at Derabassi and Mohali in Punjab, and generation of hydropower through 5 Mini Hydro Power Plants in Himachal Pradesh. The company is listed on BSE (Code: 514397) and NSE.
Source: None/Company/INE450S01011/fdc093bcbff64890.pdf
Historical Stock Returns for Mohini Health & Hygiene
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -7.14% | +6.85% | -19.17% | -32.99% | +62.50% |
How will MHHL integrate Winsome Yarns' cotton yarn manufacturing operations with its existing health and hygiene business portfolio?
What potential synergies could emerge from combining MHHL's business model with Winsome Yarns' textile manufacturing and hydropower generation capabilities?
Will MHHL consider further acquisitions in the textile sector following the successful completion of this resolution plan?
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