Fedders Electric and Engineering Limited (FEEL) has received approval from the National Company Law Tribunal (NCLT) Allahabad Bench to modify its Resolution Plan, allowing for the delisting of its shares from the National Stock Exchange (NSE) and BSE Limited. This development marks a significant change in the company's status following its Corporate Insolvency Resolution Process (CIRP).

Background and Resolution Process

FEEL entered the CIRP in February 2019, with its initial resolution plan approved in October 2021. The need for modification arose due to amendments in the Securities Contracts Regulation Rules introduced in June 2021, which mandate a minimum 5% public shareholding for listed companies post-resolution plan implementation.

Key Details of the Modification

• Current Shareholding: 100% held by IM+ Capitals Limited (now Fedders Holding Limited)
• Public Shareholding: Currently non-existent
• Committee of Creditors Approval: 74.41% voting share in favor of modification
• Major Approving Creditors:

Stock Exchange Responses

Both NSE and BSE have raised no objections to the delisting, subject to compliance with applicable regulations. The BSE had previously initiated a freezing action against the promoters and promoter group due to non-compliance with the minimum public shareholding requirement.

NCLT Order Highlights

The NCLT order includes the following key points:

1. Approval for modifying the Resolution Plan to permit delisting
2. Acknowledgment of no objections from NSE, BSE, and the Committee of Creditors
3. Requirement for compliance with all applicable delisting regulations and conditions set by stock exchanges or SEBI

Implications and Next Steps

This NCLT approval allows Fedders Electric and Engineering Limited to continue as a going concern while becoming delisted from both exchanges. The company will need to follow through with the delisting process in compliance with all relevant regulations and requirements set by the stock exchanges and SEBI.

The modification of the Resolution Plan and subsequent delisting represent a significant corporate action for FEEL, potentially impacting its future operations and stakeholder relationships. Investors and market participants should closely monitor further developments as the company proceeds with the delisting process.

Fedders Holding has announced a significant expansion in its commercial real estate portfolio through its wholly owned subsidiary, Fedders Electric and Engineering Limited. The company has developed 500,000 square feet of commercial rental space across two strategic locations in Uttar Pradesh, marking a notable step in its diversification efforts.

Project Details

The development encompasses two distinct locations:

1. Noida: A total of 300,000 square feet, evenly split between:

   • 150,000 sq ft dedicated to warehouse facilities
   • 150,000 sq ft allocated for IT services

2. Sikandrabad, District Bulandshahr: 200,000 square feet designated for warehouse purposes

This strategic expansion demonstrates Fedders Holding's commitment to capitalizing on the growing demand for commercial and logistics spaces in key urban and industrial centers of Uttar Pradesh.

Leasing Status

While the infrastructure development has been completed, Fedders Holding has disclosed that lease agreements for these newly developed properties have not yet been finalized. The company is likely in the process of identifying and negotiating with potential tenants to occupy these spaces.

Market Implications

This development could potentially open up new revenue streams for Fedders Holding, diversifying its income sources beyond its core operations. The mix of warehouse and IT service spaces suggests a balanced approach to cater to various sectors of the economy.

Company Background

Fedders Holding, formerly known as IM+ Capitals Limited, is headquartered in Ghaziabad, Uttar Pradesh. The company's move into commercial real estate development through its subsidiary indicates a strategic shift or expansion of its business model.

As the commercial real estate market continues to evolve, particularly in the wake of changing work dynamics and the growth of e-commerce, Fedders Holding's investment in both warehouse and IT service spaces could position the company to capitalize on these trends.

Investors and market watchers will likely keep a close eye on future announcements regarding lease agreements and the potential impact on the company's financial performance in the coming quarters.