Radha Madhav Corporation Ltd has completed a significant equity restructuring by allotting 1,11,70,000 shares to Plug & Play Retail and Distribution Private Limited and Vijay Patel, collectively identified as the Successful Resolution Applicant (SRA). This transaction, executed on July 18, 2026, marks the implementation of the Resolution Plan previously approved by the Hon'ble National Company Law Tribunal (NCLT) via an order dated August 1, 2022. The move consolidates control within the new promoter group, fundamentally altering the ownership structure of the listed entity.

The allotment was disclosed to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on July 30, 2026, pursuant to Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Nitin Jain, Whole Time Director and CFO of Radha Madhav Corporation Ltd, signed the disclosure, confirming that the Form B submission had been received from the SRA. The regulatory filing ensures transparency regarding the change in promoter holdings as mandated by market norms.

Prior to this acquisition, Plug & Play Retail and Distribution Private Limited held 15,40,000 equity shares, representing an 11.50% stake in Radha Madhav Corporation Ltd on a diluted basis. The fresh allotment of 1,11,70,000 shares significantly expanded this position. Post-allotment, the combined holding of the SRA stands at 1,27,10,000 equity shares, which translates to a 94.91% ownership interest in the company on a diluted basis. This near-total acquisition underscores the finality of the resolution process initiated years ago.

The transaction was categorized as a fresh allotment rather than a market purchase or off-market transfer, aligning with the specific terms of the NCLT-approved Resolution Plan. Vijay Patel, Director of Plug & Play Retail and Distribution Private Limited, authorized the submission from Vapi on July 30, 2026. The company’s registered address for the SRA is located in Valsad, Gujarat, indicating the geographical base of the new controlling stakeholders.

What the Numbers Show

The shift from an 11.50% to a 94.91% stake represents a decisive consolidation of ownership, effectively removing public float volatility regarding promoter pledging or dilution fears. With nearly 95% of the equity now held by the SRA, Radha Madhav Corporation Ltd operates under a highly concentrated ownership model. This structure typically allows for swift strategic decision-making but reduces liquidity for minority shareholders, as the remaining public holding is minimal. The absence of derivative trading activity by the promoters, as noted in the filing, suggests a long-term hold strategy rather than speculative positioning.

Radha Madhav Corporation Limited reported a net loss of ₹236.17 million for the quarter ended September 30, 2022, a significant decline from the profit of ₹1.18 million recorded in the corresponding quarter of the previous year. Revenue from operations dropped to ₹0.34 million, down from ₹0.55 million in the same period last year. The company’s total income for the quarter stood at ₹0.49 million.

The financial performance was heavily impacted by exceptional expenses and adjustments following the approval of a resolution plan by the National Company Law Tribunal (NCLT), Ahmedabad Bench. The resolution plan, involving M/s. Vama Construction, was approved on August 1, 2022, leading to a drastic reduction in assets and liabilities. The new promoters have inducted new directors, discontinuing the previous management base.

Financial Results Overview

The company reported a total expense of ₹236.66 million for the quarter, a sharp increase from the ₹2.66 million reported in the corresponding quarter of the previous year. Other expenses surged to ₹202.75 million, while changes in inventories amounted to ₹30.36 million. Depreciation and amortization expenses were recorded at ₹2.22 million.

For the half-year ended September 30, 2022, the company reported a net loss of ₹238.95 million on a total income of ₹1.01 million. In comparison, the corresponding half-year of the previous year saw a profit of ₹2.27 million on a total income of ₹9.97 million.

Assets and Liabilities

The statement of assets and liabilities as of September 30, 2022, showed total assets at ₹375.09 million, a decrease from ₹547.65 million as of March 31, 2021. Total equity stood at a negative ₹75.24 million, compared to a negative ₹367.37 million in the previous year. Total liabilities were reported at ₹450.33 million.

Current assets decreased significantly to ₹114.85 million from ₹255.19 million, driven largely by a reduction in trade receivables and other current assets. Cash and cash equivalents, however, increased to ₹57.87 million from ₹5.63 million in the previous year.

Auditor's Observations

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors on December 8, 2023. Ajay Shobha & Co., Chartered Accountants, conducted the limited review pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The auditors noted that the resolution plan approved by the NCLT led to a drastic reduction in assets and liabilities. They also drew attention to the preparation of financial results on a going concern basis, as stated in the notes, though their opinion was not modified in this regard.