1. The Board of Directors of the Company ('Board') at their meeting held today approved the Scheme of Arrangement between the Company and its Shareholders for reduction of share Capital ....
Awaiting price reaction for this filing.
The Board of Silicon Valley Infotech approved a Scheme of Arrangement under Section 66 of the Companies Act, 2013 to reduce share capital. The number of equity shares will be cut from 12,96,80,000 to 25,93,600 (a 50:1 consolidation), while the face value stays at Re.1 per share. This will reduce paid-up capital from Rs. 12.97 crore to Rs. 25.94 lakh, with the reduction being used to write off accumulated losses and clean up the balance sheet. No cash will go out, no consideration will be paid to shareholders, and the shareholding pattern will remain unchanged. The scheme still needs approval from shareholders, the NCLT Kolkata Bench, and other regulators before it becomes effective.
Existing shareholders will end up holding far fewer shares (1 share for every 50 held), but their overall percentage stake and rights stay the same. The move is balance-sheet cleanup, not value creation — it may improve optics and future growth prospects but does not change the company's underlying worth or bring in any cash.