Jyoti Structures road to recovery
Jyoti Structures, which was acquired by Sharad Sanghi along with other NRI investors, has formally become a 100% public listed company with bringing down of the its ex-promoters holding to zero. The new management informed the exchanges about this on 25 June 2021.
The 18.6% shares held by the promoters has been extinguished and a similar number of shares has been allocated in the public shareholding category. The company now has 10.95 crore shares, all categorised as held by public.
As per the resolution plan, Jyoti Structures would no longer be an individual or family-run business but it would become a board-managed, professional-run company. Under the new management, founder promoters would neither be allotted any equity shares nor be on the board of the company.
Outgoing Promoters
| Name of the Outgoing Promoters | % shares held |
| Madanlal Lilaram Valecha | 0.25 |
| Prakash Kanayalal Thakur | 4.51 |
| Varsha N Valecha | 0.03 |
| Rajesh Gopaldas Valecha | 0.2 |
| Jyoti Motiani ** | 2.27 |
| Sanjay H Mirchandani | 0.41 |
| Seema K Mirchandani | 0.41 |
| Kishor Harish Mirchandani | 0.43 |
| Valecha Mohini Narain | 0.06 |
| Kanayo Ratanlal Thakur | 3.34 |
| Vijay H Mirchandani | 0.39 |
| Neeta V Mirchandani | 0.44 |
| Val-Mir-Constructions Private Limited | 0.05 |
| Surya India Fingrowth Private Limited | 5.35 |
Jyoti Structures has been a player in turnkey/EPC projects in the field of power transmission. Its main business focus areas are transmission lines, substations and distribution projects. It undertakes turnkey projects on a global scale, offering a complete range of services in design, testing, manufacturing, sourcing, supply and construction.
The Annual General Meeting (AGM) held recently approved the consolidated and standalone results for 2019-20.
The company ended 2019-20 with a total loss of Rs 2,300 crore compared to a loss of Rs 1,751 crore in the previous financial year. Total income of the company also fell from Rs 104 crore in 2018-19 to Rs 2.46 crore in 2019-20.
Jyoti Structures net worth had eroded by Rs 9,600 crore by the end of 2019-20. The company has total current assets of Rs 1,600 crore of which trade receivables accounted for Rs 1,360 crore while cash and bank balance accounted for Rs 24 crore.
The new management has started taking control of the company, and appointed Anil Mishra as chief financial officer of the company on 25 June 2021.
Corporate insolvency process
The corporate insolvency resolution process (CIRP) of Jyoti Structures was initiated on basis of the order dated 4 July 2017 by National Company Law Tribunal (NCLT), Mumbai Bench on the company application made by SBI under the provisions of Insolvency and Bankruptcy Code, 2016 (IBC).
The resolution plan submitted by the successful resolution application was accepted by the committee of creditors in March-April 2018 and has finally been approved by NCLT through the order dated 27 March 2019.
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