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 ATN International Ltd approved a Scheme of Arrangement under Section 66 of the Companies Act, 2013 to reduce the company's share capital. Currently, the company has 3,94,50,000 equity shares of Rs. 4 each, totalling a paid-up capital of Rs. 15.78 crore. Post reduction, the share count will drop to 7,89,000 equity shares of Rs. 4 each, bringing paid-up capital down to Rs. 31.56 lakh. Face value remains unchanged, but effectively every 50 shares will consolidate into 1 share. The reduction is being done to write off accumulated losses and present a truer picture of the company's financial position. No cash is involved, and there is no change in the shareholding pattern or shareholder rights.
Existing shareholders' proportional ownership remains unaffected, but the drastic reduction in share count (about 98%) signals the company has significant accumulated losses it wants to clean off its books. Near-term stock price may decline mathematically due to reduced liquidity and share count, though the exercise is intended to strengthen the balance sheet for future growth.