What’s new

• Committee of Creditors approves liquidation of Lakshmi Precision Screws.
• Resolution Professional cites non-cooperation from former directors, files IBC application against them.
• Liquidation application filed with NCLT Chandigarh for adjudication.

Why it matters

Liquidation means the end of the road for a company that has been in CIRP since July 2018. Existing equity is virtually certain to be wiped out, and the company will be dissolved and delisted. For a ₹5 cr market cap stock, this is a terminal event.

What we’re watching

• NCLT order on the liquidation application, expected to confirm the CoC decision.
• Any challenge or appeal by the former directors or other stakeholders.
• Process of asset sale and distribution to creditors, likely no residual for equity.

The full read

The Committee of Creditors of Lakshmi Precision Screws has approved liquidation, ending a five-year wait for a resolution plan. The company has been under CIRP since July 2018, and the Resolution Professional has cited persistent non-cooperation from former directors. A separate application against them under the IBC has been filed. The liquidation order now awaits the NCLT Chandigarh's nod, a near-formality for a company whose market cap is ₹5 crore and debt-to-equity ratio stands at 10.1. For equity holders, this is the final curtain. The company's assets will be sold to repay creditors, leaving nothing for shareholders. The stock is likely headed for delisting.

Primary source: BSE · NSE