Disclosure under Regulation 30 of SEBI LODR - Order of the National Company Law Tribunal, Indore Bench approving the Reduction of Share Capital.
Awaiting price reaction for this filing.
The NCLT Indore Bench has approved a 40% reduction in Cistro Telelink's paid-up share capital via its order dated January 21, 2026. The paid-up equity capital will be cut from Rs. 5.13 crore (5,13,43,000 shares of Re. 1 each) to Rs. 3.08 crore (3,08,05,800 shares of Re. 1 each), with no cash consideration paid to shareholders. The move is aimed at writing off accumulated losses of around Rs. 2.05 crore, which stemmed from severe financial distress the company faced after Covid-19. Post-reduction, carried-forward losses would shrink from Rs. 216.27 lakhs to roughly Rs. 10.90 lakhs. The company has stated that the cleanup is to prepare the balance sheet for future fundraising and business restructuring. The special resolution for this was passed by shareholders on July 25, 2024 with 99.93% approval, and the sole unsecured creditor (Rs. 50,000) has given consent.
Existing shareholders will see their share count fall by 40% without receiving any compensation, which is dilutive in nature. However, the reduction is meant to clean up the balance sheet and improve the company's ability to raise fresh capital and revive operations, which could be positive in the long run if the restructuring succeeds.