Letter with Postal Ballot Notice are attached pertaining to Scheme of Reduction of Share Capital;Material Related Party Transactions; Material Related Party Transactions with S P Finance ....
BALKRISHNA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.5 pts more than Nifty Microcap 250 and 0.7 pts more than its Paper & Paper Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
Minute windows have no benchmark: there is no intraday index history to compare against.
Balkrishna Paper Mills is seeking shareholder approval via postal ballot for four items. First, a Scheme of Reduction of Share Capital that will cancel accumulated losses of Rs. 52.28 crore (as of September 30, 2025) by reducing the face value of equity shares from Rs. 10 to Rs. 1 (a 90% reduction), while the number of shares (3.22 crore) remains unchanged. Second, cancellation of Rs. 110 crore preference share capital held by five related parties, with payment deferred as unsecured non-interest bearing loans pending availability of funds. Third and fourth, approval for inter-corporate deposits (ICDs) of up to Rs. 25 crore per year with two related parties (S P Finance and Sanchna Trading) for FY 2026-27 and FY 2027-28 at interest rates up to 12% per annum. The resolutions require NCLT confirmation for the capital reduction and are subject to shareholder e-voting from June 3 to July 2, 2026.
The capital reduction will reduce the company's share face value from Rs. 10 to Re. 1, which is an accounting adjustment and does not change the value of shareholders' holdings. The preference share cancellation and related party ICDs may raise governance concerns given the significant related party exposure of Rs. 110+ crore in loans plus ongoing ICD facilities.