1. Reduction of capital of the Company due to accumulated losses to the extent of 99% of the Paid-up capital of the Company. 2. Making necessary applications
Awaiting price reaction for this filing.
The board of Popees Cares Limited approved a 99% reduction in paid-up share capital to set off accumulated business losses. Post-reduction, the share capital will stand at approximately ₹6,02,210, comprising just 60,221 fully paid-up equity shares, down from the existing capital base. The decision is based on a valuation report from IBBI Registered Valuer CA Jay Shah and the audited financials for FY ended 31 March 2025, and will require shareholder approval at the upcoming AGM as well as NCLT Chennai Bench clearance. Partly paid-up shares will also be written off through this capital reduction process. Additionally, the board appointed CA Bobby M Vincent as Internal Auditor for FY 2025-26 and approved a reconstitution of the board effective 15 June 2025.
This is a deeply negative event for existing shareholders — a 99% capital reduction means each investor's holding will effectively shrink to just 1% of its current face value, signalling severe financial distress with accumulated losses exceeding the entire paid-up capital. Pending NCLT and shareholder approvals, this filing effectively wipes out nearly all of the equity value, and the stock is likely to face significant downward pressure.