Eco Hotels and Resorts Limited has announced the forfeiture of 13,61,580 partly paid-up equity shares. This action follows the shareholders’ failure to pay the outstanding call money for their rights issue shares. The Board approved the forfeiture, citing non-compliance with payment terms as per the Companies Act and the company’s Articles of Association.
Share Forfeiture Due to Non-Payment
Eco Hotels and Resorts Limited has officially initiated the process of forfeiting a significant number of its partly paid-up rights equity shares. This action, approved by the Board of Directors on October 13, 2026, impacts 13,61,580 shares. The forfeiture is a direct consequence of shareholders failing to meet the payment obligations for the First Call, Second Call, and Third & Final Call money demanded for their partly paid-up rights equity shares.
Details of the Forfeiture
The company dispatched forfeiture notices to the concerned shareholders on October 16, 2026, via electronic mode, with physical dispatch completed by October 17, 2026. The shares in question were issued at a face value of Rs. 10/- each. The decision to forfeit these shares aligns with the provisions of the Companies Act, 2013, and the company’s Articles of Association.
Previously, the company had made calls for payment on these shares. The Rights Issue Committee had approved the first call of Rs. 3.80/- per share, followed by a second call of Rs. 3.80/-, and a third and final call of Rs. 3.80/- per share. Shareholders were given specific periods to deposit these amounts, with the final payment deadline for call money being August 31, 2026. Failure to comply with these calls has led to the forfeiture.
The forfeiture signifies the extinction of all shareholder interest and claims against the company related to these shares. The forfeited shares will now be considered the property of Eco Hotels and Resorts Limited, which may then sell, dispose of, or cancel them as it deems fit.
Source: BSE
