Essar Steel shares held by investors have been debited from their demat accounts and those held in physical form as share certificates will also not be valid, following the resolution plan which seeks to extinguish the capital, the company announced on Thursday.
In an e-mail statement to investors, Essar Steel India Company Secretary Pankaj S. Chourasia said that in connection with the corporate insolvency resolution process of Essar Steel India, the resolution plan submitted by ArcelorMittal India has been approved by the Supreme Court through its judgment of November 15, 2019, after considering the judgment of the National Company Law Tribunal (NCLT) Ahmedabad and National Company Law Appellate Tribunal (NCLAT).
The Resolution Plan provides for the reduction of the entire existing capital - issued, subscribed and paid-up share capital (both equity and preference) - of the company held by the existing promoters and public shareholders, in such a manner so as to result in ArcelorMittal India (along with its nominee shareholders) becoming the sole shareholders of the company.
Consequently, the entire existing issued, subscribed and paid-up share capital of the company stood cancelled and extinguished with effect from December 16, 2019, the company secretary said.
"Pursuant to such capital reduction and cancellation, the shares of the company held by investors have been debited from their demat account," he said.
"Share certificates held in physical form will also be not valid henceforth," he added.