1. Reduction of capital of the Company due to accumulated business losses to the extent of 99 % of the Paid-up Capital of the company subject to shareholders approval in the ensuing AGM. 2. ....
Awaiting price reaction for this filing.
The board approved a 99% reduction in paid-up share capital to offset accumulated business losses that have exceeded the company's paid-up capital. After the reduction, share capital will stand at approximately ₹6.02 lakh, comprising 60,221 fully paid-up equity shares, down from the current level. The proposal requires shareholder approval at the upcoming AGM and NCLT Chennai Bench approval, with the relevant date fixed as 1st April 2025. The board also appointed CA Bobby M. Vincent as the new internal auditor for FY2025-26 and approved reconstitution of the board effective 15th June 2025. Note: the filing is signed by Popees Cares Limited (Director Shaju Thomas) under scrip code 530565, which may indicate a name change or related-party situation.
This is a deeply negative signal for shareholders — a 99% capital wipeout means existing equity holders will be left with just 1% of their current holding's face value, reflecting that the company has effectively lost more than its entire net worth. Expect sharp negative price reaction and heightened insolvency/distress risk perception.