Please find attached the letter received from the BSE with respect to draft scheme for reduction of share capital of the Company.
Awaiting price reaction for this filing.
Trustwave Securities Ltd informed the BSE that it received a letter dated 16th June 2025 regarding its application for a draft scheme to reduce paid-up equity share capital by 95% to write off carried-forward accumulated losses from past years. The original draft scheme was filed with the exchanges on 13th November 2024. SEBI amended Regulation 37(6) of the Listing Regulations on 12th December 2024, exempting such loss-write-off schemes from the exchange approval process. Since the company's scheme falls under this exemption, BSE has returned the draft as Regulation 37 is no longer applicable. The company will now directly approach the NCLT Mumbai for approval of the capital reduction under the Companies Act, 2013.
This is a significant negative signal — a 95% cut in paid-up share capital indicates the company has massive accumulated losses it is trying to absorb. While the cut applies uniformly to all shareholders on a pro rata basis, it materially reduces the capital base and signals deep financial weakness. Shareholders should expect substantial erosion in the book value of their holdings if the NCLT approves the scheme.