Jagran Prakashan Updates on NCLT Proceedings in Family Dispute Cases
Jagran Prakashan Limited (JPL) has provided updates on two ongoing cases before the National Company Law Tribunal (NCLT) in Allahabad. These cases involve petitions filed by certain promoter and promoter group members against others under Sections 241, 242, and 244 of the Companies Act, 2013. The next hearing for both cases is scheduled for December 18. JPL's management currently does not expect any adverse impact on its financial position or future operations. The company's Q2 financial results show resilience with a 4.70% increase in operating revenue and a 36.70% increase in profit after tax compared to the previous year.
*this image is generated using AI for illustrative purposes only.
Jagran Prakashan Limited (JPL), one of India's leading media conglomerates, has disclosed updates on two ongoing cases before the National Company Law Tribunal (NCLT) in Allahabad. These cases involve petitions filed under Sections 241, 242, and 244 of the Companies Act, 2013, by certain promoter and promoter group members against other promoters and promoter group members of the company.
Key Developments in NCLT Proceedings
Jagran Prakashan Limited has provided updates on two ongoing NCLT cases involving the Gupta family members. The proceedings were heard on December 1, and the following developments were reported:
C.P. No. 64 of 2023 (Mahendra Mohan Gupta and Others v. Devendra Mohan Gupta and Others):
- The next hearing is scheduled for December 18.
C.P. No. 57 (Shailendra Mohan Gupta and Others v. Jagran Media Network Investment Private Limited and Others):
- The NCLT has directed respondents to file their replies within one week.
- This matter is also scheduled for further hearing on December 18.
Both cases involve oppression and mismanagement petitions and are set to be heard on the scheduled date.
Company's Stance and Future Updates
Jagran Prakashan has stated that it will provide updates only when there are material developments in the proceedings. The company's management currently does not expect any adverse impact of these matters on its financial position as of September 30 or on its future operations.
Background of the Litigation
The litigation began on July 10, 2023, when Mr. Mahendra Mohan Gupta (Non-Executive Chairman and Promoter) and Mr. Shailesh Gupta (Whole-Time Director and member of the Promoter group) filed a petition against other Promoters and Promoter Group members. During the current quarter, Shailendra Mohan Gupta (Non-Executive Director and Promoter Group member) filed a similar petition.
Management Changes
It's worth noting that Mr. Mahendra Mohan Gupta's term as managing director of the company concluded on September 30, 2023. As of now, Jagran Prakashan does not have a managing director.
Financial Performance
While the litigation is ongoing, Jagran Prakashan's financial results for Q2 show resilience:
| Financial Metric | Q2 (₹ in crores) | Q2 Previous Year (₹ in crores) | YoY Change |
|---|---|---|---|
| Operating Revenue | 467.36 | 446.51 | +4.70% |
| Operating Profit | 66.58 | 67.53 | -1.40% |
| Profit Before Tax | 71.14 | 62.34 | +14.10% |
| Profit After Tax | 56.94 | 41.65 | +36.70% |
The company's financial performance demonstrates its ability to maintain operations and growth despite the ongoing legal proceedings.
As the NCLT cases progress, stakeholders will be watching closely for any developments that could impact Jagran Prakashan's corporate governance structure or operational dynamics. The company's commitment to providing updates on material developments suggests a transparent approach to addressing these legal challenges.
Historical Stock Returns for Jagran Prakashan
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.65% | -0.91% | -4.38% | -14.93% | -14.58% | +1.17% |
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