Synopsis:
Diksha Greens hit a 5% lower circuit after NCLT admitted an insolvency plea by Punjab & Sind Bank over unpaid dues of Rs 46.03 crore. The loan, given in 2018, turned NPA in 2019. NCLT has started CIRP and appointed an IRP.
With a market capitalisation of Rs 4.34 crore, the shares of Diksha Greens are currently trading at Rs 4.40 per share, down by 31 percent from its 52-week high of Rs 6.40 crore. In the last one year, the stock has delivered a positive return of 26 percent.
The National Company Law Tribunal (NCLT) in Kolkata has accepted a petition from Punjab & Sind Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC), which sets off insolvency proceedings against the company.
Back in 2018, Punjab & Sind Bank approved a loan of Rs 22.45 crore for Diksha Greens. Unfortunately, the account was marked as a Non-Performing Asset (NPA) on February 22, 2019. Despite multiple follow-ups and even an attempt to restructure the loan, the company couldn’t meet its repayment obligations.
According to the bank’s report, the total amount owed has increased to Rs 46.90 crore, which includes unpaid interest. After reviewing the loan documents and the history of defaults, the tribunal confirmed that the default was evident and ordered the petition’s admission.
As a result, the NCLT has kicked off the Corporate Insolvency Resolution Process (CIRP) against Diksha Greens Ltd. An Interim Resolution Professional (IRP) has been appointed to oversee the company’s operations and start the resolution process in line with IBC regulations.
Written by Satyajeet Mukherjee
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