Summary of Key Information:
Series: EQ
Nature of Filing / Announcement: Outcome of Board Meeting regarding share capital consolidation
Corporate Actions:
The Board of Directors approved the consolidation of Equity Share Capital in the ratio of 10:1. Specifically, 10 Equity Shares of face value of Re. 1/- each will be consolidated into 1 Equity Share of face value Rs. 10/- each.
This consolidation will result in:
- 70,00,00,000 Equity Shares of Re. 1/- each in the Authorized Share Capital being consolidated into 7,00,00,000 Equity Shares of Rs. 10/- each.
- The Authorized Share Capital remains unchanged at Rs. 70,00,00,000/- (Rupees Seventy Crore Only).
- The alteration of Capital Clause (Clause V) of the Memorandum of Association to reflect the new structure.
Rationale for Consolidation:
The consolidation is intended to:
- Reorganize the Company's share capital structure
- Align the market price of Equity Shares more appropriately with intrinsic value and fundamentals
- Result in a more representative trading price
- Provide better reflection of operational performance, net worth and future growth potential
- Enhance investor perception by presenting a capital structure that accurately reflects financial position
- Improve key per-share financial metrics and ratios
- Reinforce credibility and market positioning
- Reduce overhead costs incurred on servicing fragmented shareholders
Expected Timeline:
Completion within 6 months from the date of approval by Shareholders, subject to receipt of regulatory approvals.
Share Class Details:
The consolidated Equity Shares will rank pari-passu with existing Equity Shares of the Company. There is only one class of shares - Equity Shares without Differential Rights.
Shareholder Impact:
The number of shareholders who did not get any shares in consolidation and their pre-consolidation shareholding will be ascertained after the Board fixes the Record Date and disclosed in due course.