News Corporate Actions LEEL Electricals Defers Share Capital Audit Report Due to Capital RestructuringLEEL Electricals Defers Share Capital Audit Report Due to Capital Restructuring
LEEL Electricals Limited has deferred its share capital audit report for Q3 FY26 due to ongoing capital restructuring following acquisition by Krishna Ventures Limited through insolvency resolution. The restructuring includes complete cancellation of promoter shareholding, reduction of public shareholding in 1:43 ratio, and preferential allotment of 1,02,60,000 shares to the acquirer.
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LEEL Electricals Limited has notified stock exchanges that it will defer the submission of its Reconciliation of Share Capital Audit report for the quarter ended December 31, 2025, citing ongoing capital restructuring activities following its acquisition through the insolvency resolution process.
Background of Acquisition
The company underwent liquidation proceedings initiated by the National Company Law Tribunal (NCLT) Allahabad Bench on December 6, 2021. Subsequently, NCLT approved the sale of the company as a going concern to Krishna Ventures Limited (KVL) through its order dated March 21, 2024. The liquidator issued a Sale Certificate on June 12, 2024, completing the acquisition under the Insolvency and Bankruptcy Code, 2016.
The new management took control of the company's board effective July 1, 2024, with the acquirer currently in the process of complete takeover, including company records and operations.
Capital Restructuring Details
The Board of Directors has approved a comprehensive capital restructuring plan through multiple meetings:
| Meeting Details | Key Decisions |
|---|---|
| Meeting 05/2024-25 (December 24, 2024) | Complete cancellation of promoter equity shareholding; Public shareholding reduction to 1:43 ratio |
| Meeting 08/2024-25 (March 7, 2025) | Allotment of 5,43,011 equity shares to eligible public shareholders |
| Meeting 02/2025-26 (July 26, 2025) | Preferential allotment of 1,02,60,000 equity shares to acquirer and affiliates |
Shareholding Restructuring
The restructuring involves several key components:
- Promoter Shares: Complete cancellation and extinguishment of existing promoter and promoter group shareholding without any payout
- Public Shareholding: Reduction in the ratio of 1:43, meaning existing public shareholders will receive 1 share for every 43 shares held as on the record date of November 22, 2024
- New Allotments: Proportionate allotment of 5,43,011 equity shares to eligible public shareholders to maintain minimum public shareholding of 5% as per Securities Contracts Regulations Rules, 1957
Regulatory Compliance
The company has filed relevant Corporate Action Forms with depositories and Listing Applications with stock exchanges for implementing the capital restructuring. The management stated that the disclosure of the share capital audit report would serve no meaningful purpose until the capital restructuring exercise is completed and updated in the system.
Current Status
LEEL Electricals, formerly known as Lloyd Electric & Engineering Limited, continues its operations under the new management while the capital restructuring process remains under review by relevant authorities. The company has requested stock exchanges to take note of the deferment and inform all concerned parties about the ongoing restructuring activities.
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