Mohini Health & Hygiene Limited — Important, 17-04-2026: Disclosure of material issue

Mohini Health & Hygiene (MHHL) has received NCLT approval for its Resolution Plan to acquire Winsome Yarns Limited (WYL), a company undergoing Corporate Insolvency Resolution Process (CIRP).

**The Issue:** Winsome Yarns was facing significant financial distress with admitted claims from financial creditors totaling approximately `1895 Cr`.

**Possible Impact:**

* **For Mohini Health & Hygiene (MHHL):** This acquisition marks a strategic expansion, allowing MHHL (primarily in hygiene products) to take over WYL's operations in cotton yarn, knitting, and hydropower. MHHL's plan has a total value of `162.90 Cr`. The company has secured `154 Cr` in funding from Union Bank of India and will use internal funds for the acquisition and subsequent operations.

* **For Winsome Yarns' Creditors:** Secured financial creditors will receive `137 Cr` against their `~1895 Cr` admitted claims, representing a substantial haircut. Operational creditors, including workmen and employees, will receive `30 Lakh`, government dues `10 Lakh` (plus up to `2.50 Cr` for EPFO), and other operational creditors `50 Lakh`.

* **For Existing Winsome Yarns Shareholders:** Their equity will be drastically diluted, effectively reducing their stake to 5% of the restructured share capital. MHHL will hold a controlling 95% stake, essentially wiping out most of the value for existing public shareholders.

**Company’s Response/Mitigation Plan (The Resolution Plan):** MHHL plans to inject `20 Cr` for overhauling and working capital expenditure into Winsome Yarns within 365 days of NCLT approval. A Monitoring Committee will oversee WYL for 90 days, after which MHHL will reconstitute the Board and assume full management control to implement the turnaround plan. The objective is to revive WYL and maximize its asset value.