Intimation of receipt of order from NCLT in the matter of capital reduction
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NCLT Ahmedabad Bench has approved Saptak Chem and Business Limited's scheme to reduce paid-up share capital by 90%, from Rs. 10.73 crore (1,07,32,272 equity shares) down to Rs. 1.07 crore (10,73,227 equity shares), by cancelling and extinguishing 96,59,045 equity shares. The move is aimed at writing off accumulated losses of about Rs. 12.87 crore as of March 2023 and realigning the balance sheet to reflect actual asset values. Shareholders had already cleared the plan via a special resolution at the AGM on 27 June 2024. No objections were raised by any unsecured creditors, the Regional Director, the Registrar of Companies, or the Income Tax Department, and a pending investor grievance about demat of shares has been resolved.
This is highly value-destructive for existing shareholders — each investor will see 90% of their shareholding cancelled with no cash payout, since this is a balance-sheet write-off and not a buyback. The stock is likely to face sharp repricing once the reduction takes effect, as the share count drops to just one-tenth of its previous level.