Outcome of Board Meeting - Receipt of First and Final Call Money pursuant to Reminder-cum-Forfeiture Notice, conversion of partly paid equity shares to fully paid-up equity shares for which ....
Awaiting price reaction for this filing.
Iykot Hitech Toolroom Ltd's Board has approved the receipt of First and Final Call Money from 63 shareholders for 1,94,323 partly paid-up equity shares, totalling about ₹10.20 lakh at ₹5.25 per share. These partly paid shares will now be converted into fully paid-up equity shares of ₹5 face value. The Board has also approved forfeiture of the remaining 99,01,931 partly paid-up shares (with ₹1.25 paid-up value each) on which the call money remained unpaid. Post this action, the paid-up equity capital stands at ₹5.19 crore comprising 1,03,78,069 fully paid shares. The forfeited shares will be cancelled and not re-issued, which will also reduce the listed capital going forward.
For existing shareholders whose shares get forfeited, this means a permanent loss of their partly paid holdings. For the company, the cancellation of unpaid shares cleans up the capital structure and concentrates ownership among shareholders who paid in full, which is mildly positive for the per-share metrics. The stock price is unlikely to see a major reaction given the small size of the company.