Fedders Holding Limited , formerly known as IM+ Capitals Limited, has announced the lapse of 1,730,000 warrants and the subsequent forfeiture of upfront payments totaling Rs 14.01 crore. This development comes after the warrant holders failed to exercise their conversion options within the stipulated period.

Warrant Details and Expiration

The company had initially issued these warrants on April 22, 2024, with the following terms:

• Face Value: Rs 10 each
• Premium: Rs 562 per share
• Issuance Basis: Preferential
• Conversion Period: 18 months from the date of allotment
• Conversion Deadline: October 21, 2025

Financial Impact

As a result of the non-conversion, Fedders Holding Limited has forfeited the upfront payments, which represented 25% of the issue price received at the time of allotment. The total amount forfeited stands at Rs 14,01,40,000.

Allottee Details

The following table provides a breakdown of the allottees and the respective amounts forfeited:

Regulatory Compliance

The company has made this announcement in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The forfeiture of the upfront amount is in accordance with the SEBI (Issue of Capital and Disclosure Requirement) Regulations, 2018.

Impact on Share Structure

With the lapse of these warrants, the potential dilution that would have occurred upon conversion has been averted. This development may have implications for the company's capital structure and existing shareholders' positions.

Investors and stakeholders are advised to take note of this corporate action and its potential impact on the company's financial position and share valuation.

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.