Copy of order of Scheme of Arrangement pronounce by NCLT
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
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The NCLT Mumbai Bench has approved a scheme to reduce Jaihind Synthetics' equity share capital by cancelling 22,26,598 shares that were inadvertently converted from warrants in January 2013 without following SEBI preferential issue rules. The paid-up capital will drop from Rs. 8.51 crore (85.46 lakh shares) to Rs. 6.29 crore (63.20 lakh shares), with Rs. 2.23 crore written off from share capital and Rs. 4.06 crore from securities premium, totaling Rs. 6.29 crore moved to Capital Reduction Reserve. Importantly, the shareholding pattern stays the same because the cancelled shares were never listed on BSE and no payment is being made to any shareholder. BSE had already given its no-objection in October 2024. The company says this cleanup will give a true picture of its finances and enable smoother business expansion and possible future dividend payments.
Existing shareholders will see no change in their ownership percentage or receive any cash payout. The share count on BSE technically shrinks by about 26%, but since the cancelled shares were never traded, there should be no real impact on stock price or liquidity. This is a housekeeping move to fix a past compliance error, not a value-creating event for investors.