Key Decision

Board of Directors approved a Scheme of Arrangement for cancellation of 10,91,187 physical shares that have not been dematerialized or claimed despite repeated communications through letters and publications.

Quantitative Details

  • Total physical shares not dematerialized as of June 30, 2026: 10,91,187 shares
  • This represents 6% of the company's total paid-up capital
  • Current shareholding structure before reduction:
  • DEMAT shares (excluding suspense shares): 1,69,91,783 shares (94% of capital) held by 2,244 holders
  • Physical shares: 10,91,187 shares (6% of capital) held by 6,044 holders

Capital Structure Impact

  • Face value of remaining shares remains unchanged at ₹5 per share
  • Reduction is not due to accumulated losses
  • Continuing shareholders will not experience dilution or write-down in value

Approval Process

The scheme requires approval from:

  • Stock Exchanges
  • Securities and Exchange Board of India (SEBI)
  • Shareholders of the Company
  • National Company Law Tribunal (NCLT)

Rationale and Benefits

  • Eliminates ongoing costs of maintaining separate suspense account for physical shares
  • Will result in all shares being in dematerialized mode post-reduction
  • Normal IEPF transfer route unavailable since company has not declared any dividends

Additional Details

  • Meeting commenced at 12:30 PM IST and concluded at 1:00 PM IST at company's registered office
  • Relevant documents for Regulation 37 approval will be submitted to stock exchanges in due course
  • No benefits will accrue to promoter or promoter group companies from this restructuring
  • No change in shareholding pattern of other entities beyond the capital reduction