Elgi Rubber Company Limited announced that its Board of Directors, in a meeting held on January 19, 2026, approved the initiation and filing of voluntary liquidation/bankruptcy proceedings for its wholly owned step-down subsidiary, Rubber Resources B.V., located in the Netherlands. This decision follows a special resolution passed by the company's members on July 31, 2025, and a recommendation from the Audit Committee on January 19, 2026. The liquidation is considered the viable legal route for an orderly exit and is in the best interest of Elgi Rubber Company. Rubber Resources B.V. contributed 26.51% of Elgi Rubber Company's revenue as of March 31, 2025, amounting to ₹101.78 crore (1017.84 millions). The subsidiary had a net worth of (₹72.08) crore ((720.84) millions), representing (49.51)% of the company's net worth. The voluntary liquidation process is expected to be completed by December 31, 2026, subject to due process and regulatory approvals in the Netherlands. The company will inform the stock exchange upon completion. This transaction is outside the Scheme of Arrangement, and shareholder approval under Section 180(1)(a) of the Companies Act, 2013, and relevant SEBI regulations has been obtained.
