Nitco Limited — Important, 07-01-2025: Updates

As of December 31, 2024, NITCO Limited has reported a significant total outstanding debt of ₹1,005.38 crore, with a concerning default amount of ₹734.80 crore attributable to loans revolving facilities from banks and financial institutions. This financial distress stems from the revocation of the restructuring agreement by JM Financial Asset Reconstruction Company, which has demanded a substantial payment of ₹2,427.76 crore and initiated Corporate Insolvency Resolution Process (CIRP) proceedings. Subsequently, the debt was assigned to Authum Investment and Infrastructure Limited, which is currently involved in a settlement process with NITCO.

On a monthly basis, NITCO has also faced legal challenges regarding the recovery of earlier debts, with a recent order from the Debt Recovery Tribunal allowing claims totaling ₹735.44 crore. The company is currently exploring legal options to contest this ruling. Investors should closely monitor these developments, as the unfolding situation could significantly impact the company's operational viability and long-term outlook.