The Company has annexed an Addendum to the Notice sent to all the shareholders of the Company for the Extra Ordinary General Meeting held on December 16, 2024.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Jaihind Synthetics Ltd has issued an addendum to the notice of its EGM held on December 16, 2024, providing additional details required by BSE for a proposed reduction of share capital. The company plans to cancel 22,26,598 equity shares that were inadvertently allotted in January 2013 to warrant holders who had only paid 25% of the required subscription amount. This will reduce total equity shares from 85,46,598 to 63,20,000, with the corresponding Rs. 6.29 crore being credited to a Capital Reduction Reserve. No cash or other consideration will be paid to any shareholder as part of this reduction — the cancelled shares will simply be extinguished. BSE had already granted its in-principle (no-objection) approval on October 21, 2024, and a SEBI-authorised merchant banker (Kunvarji Finstock) has provided a fairness opinion on the proposal.
This is essentially a long-pending housekeeping exercise to correct an error from 2011-2013 warrant conversions, not a value-creating event. Share count goes down by about 26%, but no money leaves the company, and the proportionate economic interest of existing shareholders stays intact. Existing public shareholders' percentage holding actually rises marginally (from ~90.8% to ~99.9%) post-scheme.