Please find attached the order received from NCLT, Mumbai bench approving the scheme of reduction of share capital of the Company.
Awaiting price reaction for this filing.
The NCLT Mumbai Bench has approved Trustwave Securities' scheme to reduce its share capital by 50%, cutting paid-up equity from 65,37,600 shares (₹6.54 crore) to 3,26,880 shares (₹32.69 lakh), with each share at ₹10 face value. The reduction is being carried out to offset accumulated losses of ₹6.21 crore, and no cash consideration will be paid to shareholders. The company, formerly an NBFC, surrendered its RBI registration in December 2023 and is no longer in the lending business. The company must now file the certified order with the Registrar of Companies within 30 days and publish notices in English and Marathi newspapers.
Each shareholder's share count will halve, but since the move is a book adjustment to write off losses (not a cash return), overall shareholder value remains unchanged. Technically, the share price should adjust upward post the effective date to reflect the lower share count, but the stock may see thin trading and limited interest given the company's small size and dormant core business.