NCLT Sanctions Siyaram Silk Mills Scheme To Issue Bonus Preference Shares To Equity Shareholders

NCLT sanctioned a Scheme of Arrangement for Siyaram Silk Mills Limited to issue bonus preference shares to equity shareholders using accumulated general reserves.

The scheme was approved under Section 230 of the Companies Act, 2013, by a bench comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan on July 21, 2026.

The company proposed the scheme to reward shareholders by distributing surplus reserves via listed preference shares instead of cash, citing strong cash flow and sufficient liquidity.

The scheme received unanimous board approval, majority consent from equity shareholders and unsecured creditors, and secured creditors' consent dispensed with via affidavits.

NCLT directed the company to file the order with the Registrar of Companies and comply with stamp duty adjudication.