Arkade Developers has received regulatory approval for its corporate restructuring initiative as the National Company Law Tribunal (NCLT) Mumbai Bench sanctioned the scheme of arrangement between Filmistan Private Limited and Arkade Developers Limited on March 16, 2026. The approval marks a significant milestone in the company's strategic reorganization of its business operations.

Scheme Details and Structure

The NCLT order sanctions the demerger of rental business operations from Filmistan Private Limited (demerged company) to Arkade Developers Limited (resulting company) on a going concern basis. The scheme provides for the transfer and vesting of the demerged undertaking along with various consequential and incidental matters.

Business Operations and Rationale

Filmistan Private Limited operates in manufacturing, production, distribution and exhibition of cinematographic films and pictures, along with rental business activities in India. Arkade Developers Limited is engaged in redevelopment of existing structures and new development projects, covering all aspects of real estate development from land identification and acquisition to planning, execution, construction and marketing of commercial and residential projects.

The scheme aims to achieve several strategic objectives:

• Streamline management and control of leasehold property rights by integrating them within the resulting company that already owns the underlying land
• Create unified ownership framework resulting in administrative efficiencies and rationalized operations
• Position the resulting company to explore future business opportunities with integrated ownership structure
• Benefit shareholders, creditors and stakeholders of both companies without prejudicing their interests

Regulatory Compliance and Approvals

The NCLT noted that both companies' boards approved the scheme in their respective meetings held on September 29, 2025. The Regional Director Western Region filed a report dated February 11, 2026, with various observations that were satisfactorily addressed by the applicant companies through an affidavit in rejoinder dated February 17, 2026.

Financial Restructuring

The scheme addressed concerns regarding Filmistan Private Limited's negative net worth as of March 31, 2025. Arkade Developers Limited, with a net worth of Rs. 88370.20 lakhs as of March 31, 2025, infused capital of Rs. 1260.55 lakhs into Filmistan Private Limited on September 26, 2025, through conversion of outstanding loan amounts, making the demerged company's net worth positive.

Implementation Timeline

The scheme will become effective from the date of filing the certified copy of the NCLT order with the Registrar of Companies. Arkade Developers Limited has committed to update the stock exchanges once the scheme becomes effective. The company must file the certified copy along with E-Form INC-28 within 30 days of receiving the order from the tribunal registry.

Arkade Developers Limited has announced that its promoter and Managing Director, Mr. Amit Mangilal Jain, has acquired 1,00,000 equity shares of the company through open market purchase. The transaction was completed on March 12, 2026, with the company filing the required regulatory disclosure under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Transaction Details

The share acquisition was executed on the National Stock Exchange of India at an average price of ₹108.34 per share. The total transaction value amounted to ₹1.08 crore, representing 0.05% of the company's total paid-up capital.

Shareholding Pattern Changes

Following this acquisition, Mr. Amit Jain's shareholding in Arkade Developers has increased from 66.66% to 66.71%. The purchase represents a marginal increase in his promoter holding.

Regulatory Compliance

The disclosure was made under Regulation 29(1) and 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Mr. Jain, holding DIN 00139764, submitted the required disclosure to both BSE Limited and National Stock Exchange of India Limited on March 12, 2026. The company's reference number for this disclosure is ADL/SE/25-26/105.

The regulatory filing was signed by Company Secretary and Compliance Officer Sheetal Solani (Membership No: A45964) on behalf of the company. Mr. Jain continues to maintain his position as the company's Managing Director and largest promoter, ensuring transparency in substantial acquisition activities as mandated by SEBI regulations.