Winsome Yarns Limited has received approval from the National Company Law Tribunal (NCLT), Chandigarh Bench, for its resolution plan under the Insolvency and Bankruptcy Code, 2016. The order was passed on April 16, 2026, and the company disclosed the details pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 on April 24, 2026.

Financial Position and Net Worth

The pre-CIRP net-worth of the company as per the last audited financial statements for FY 2022-23 stood at INR (40,897.33) Lakh. The post-CIRP net-worth will be determined following the implementation of the approved resolution plan. All pre-CIRP liabilities of the corporate debtor, whether crystallised or uncrystallised, stand extinguished upon approval of the resolution plan by the Hon'ble NCLT, subject to payments proposed in accordance with the approved plan.

Shareholding Restructuring

The resolution plan involves a significant restructuring of the company's equity capital. The pre-CIRP equity subscribed and paid-up shareholding comprised 7,07,07,229 equity shares of INR 10 each. The shareholding pattern as on the quarter ending March 31, 2026, prior to implementation, showed promoters and promoter group holding 38.67% and public shareholders holding 61.33%.

Post-resolution, the existing shareholders will see their equity written down to 5% on a pro-rata proportionate basis. The resolution applicant or its controlled special purpose vehicle will be allotted fresh equity shares against funds infused towards payment of unpaid CIRP costs of INR 2.5 Crores. The post-restructuring paid-up share capital will be INR 2,63,15,790.

Fund Infusion and Creditor Payments

The resolution plan involves a total fund infusion of INR 162.9 Crores including CIRP costs. The successful resolution applicant, Mohini Health & Hygiene Limited, has already deposited a performance security of INR 20,20,19,374 in the designated bank account of the corporate debtor. Additionally, Union Bank of India has issued a Principal Letter of Sanction dated September 16, 2025, sanctioning a loan of INR 154 Crores in favour of Winsome Yarns Limited.

Asset Ownership and Business Continuity

Pursuant to full and final settlement of liabilities of financial creditors in accordance with the approved resolution plan, full and absolute ownership of assets will vest in the corporate debtor. All assets of Winsome Yarns Limited subject to any encumbrance, security, and/or lien in favour of lenders will stand released free of all encumbrances to the company under complete and absolute control of the resolution applicant.

The company will continue as a going concern post-resolution, and the listing of its shares shall continue on both NSE and BSE subject to necessary adjustments in the capital structure. No additional material liabilities, other than those expressly provided for in the approved resolution plan, have been imposed on the corporate debtor.

New Promoter and Management

Mohini Health & Hygiene Limited, a public limited company engaged in manufacturing and export of surgical, absorbent and bleached cotton, surgical and hygiene products, and other medical consumables, is the resolution applicant. The present directors and key managerial personnel of the resolution applicant include Avnish Sarvapriya Bansal as Managing Director, Parul Bansal as Whole-time Director, and other directors including Mukesh Vyas, Chandrashekh Bobra, Mahesh Fogla, Mukul Jain, and Viral Rohitbhai Patel. The resolution applicant believes that the business prospects are bright and that its promoters and directors have the relevant technical knowledge and experience to manage the assets of the corporate debtor effectively.

Winsome Yarns Limited has achieved a significant milestone in its Corporate Insolvency Resolution Process (CIRP) with the National Company Law Tribunal (NCLT), Chandigarh Bench approving the resolution plan submitted by Mohini Health and Hygiene Limited. The order dated April 16, 2026, marks the culmination of the insolvency proceedings that began with the admission of CIRP on December 22, 2023.

Resolution Plan Details

The approved resolution plan carries a total value of Rs 162.90 crore against admitted claims of Rs 1,926.88 crore. Mohini Health and Hygiene Limited, the Successful Resolution Applicant (SRA), emerged as the preferred bidder after the Committee of Creditors (CoC) approved its plan with 100% voting share in the 18th CoC meeting. The SRA has a net worth of INR 89.69 crores as per audited balance sheet dated March 31, 2023.

Committee of Creditors Meeting Outcome

The 28th Committee of Creditors meeting was successfully conducted on March 25, 2026, at 05:00 PM through Video Conferencing by Mr. Anil Kohli, Designated Partner of ARCK Resolution Professionals LLP. The meeting saw resolutions proposed and approved by CoC members with requisite majority. This meeting preceded the final NCLT approval and was part of the ongoing CIRP proceedings under Regulation 30 of SEBI listing requirements.

Implementation Timeline and Mechanism

The resolution plan stipulates a comprehensive implementation mechanism spanning 365 days from the NCLT approval date. A Monitoring Committee comprising representatives of the CoC, the Resolution Applicant, and a qualified Insolvency Professional will supervise the implementation during the initial 90-day phase. The SRA has already deposited performance security amounting to Rs 14.70 crore on December 18, 2024, and has secured a loan sanction of Rs 154 crore from Union Bank of India dated September 16, 2025.

Capital Restructuring and Management Control

The plan provides for significant restructuring of the corporate debtor's capital structure. The equity share capital will be reduced to 5% for public shareholders, with the Resolution Applicant acquiring 95% shareholding in the restructured entity. The existing Board of Directors shall remain suspended until the Transfer Date (90th day from NCLT approval), after which the SRA will reconstitute the Board with new directors within 30 days.

CIRP Background and Committee of Creditors

The CIRP was initiated by Edelweiss Asset Reconstruction Company Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CoC, constituted on January 23, 2024, included major financial creditors such as Edelweiss Asset Reconstruction Company Limited (83.27% voting share), ICICI Bank Limited (4.03%), Bank of Maharashtra (3.64%), Indian Overseas Bank (3.45%), Punjab National Bank (2.99%), and Bank of India (2.62%).

Operational Status and Contact Information

Winsome Yarns Limited's registered office, previously located at Basement, SCO 13-14-15, Sector 34-A, Chandigarh, was vacated on December 30, 2024. Current operations are being conducted from B-58, Industrial Area, Phase-7, Mohali, Punjab-160055. The company maintains its listing on BSE Limited (script code 514348) and National Stock Exchange of India Limited (symbol WINSOME).