Quintegra Solutions Limited has informed the Exchange about the Capital Reduction approved by the Share Holders of the Company in the AGM
Awaiting price reaction for this filing.
Quintegra Solutions shareholders have approved a proposal to reduce the company's paid-up equity share capital by cutting the face value of each share from Rs. 10 to Re. 1. The total number of shares will stay the same at approximately 2.68 crore, but the paid-up capital will shrink by about Rs. 24.13 crores. This reduction, along with about Rs. 138.31 crores from Share Premium, General Reserve, and Capital Reserve, will be used to set off massive accumulated losses of Rs. 178.12 crores as of March 31, 2025. The company explained that these losses stem from failed overseas acquisitions (Jadelite Tech, Valley US Inc, PA Corporation) made in 2007-08 that collapsed during the global financial crisis. The goal is to clean up the balance sheet to attract new investors and revive the business. The move still needs approval from the NCLT.
Your shareholding count and ownership percentage will remain unchanged since the number of shares is not being altered, only the face value. However, this is a balance sheet clean-up exercise, not a value-creating event, and the stock may remain thinly traded and speculative given the company's history of heavy losses.