Starlite Components Ltd. Seeks NCLT Modification for Minimum Public Shareholding Compliance

Starlite Components Ltd. has applied before the Hon’ble NCLT, Mumbai Bench, seeking necessary modifications to the Approved Resolution Plan in order to ensure compliance with the minimum public shareholding requirement of 5%. The company is undergoing Corporate Insolvency Resolution Process (CIRP) and the resolution plan was approved by the National Company Law Tribunal (NCLT) on March 14, 2024. However, a regulatory requirement was introduced later mandating a minimum 5% public shareholding for listed companies, which the company did not meet. Consequently, BSE withheld permission to trade the Company's securities. The implementation of the full resolution plan is pending, and the extinguishment of existing share capital and issue of new share capital has not been done for the reasons mentioned above.