ENCLOSED HEREWITH BOARD MEETING OUTCOME FOR A MEETING DATED 21/06/2025
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Suncity Synthetics' board approved a drastic 98% reduction in paid-up share capital to write off accumulated business losses that have exceeded the company's capital base. Post-reduction, share capital will stand at roughly Rs. 9.89 lakh comprising only 98,916 equity shares, down from approximately Rs. 4.95 crore earlier. The reduction is based on a valuation by an IBBI-registered valuer and is subject to shareholder and NCLT approval. The 37th Annual General Meeting has been scheduled for 29th July 2025 via video conferencing, with the record/cut-off date set as 22nd July 2025. The board also approved the AGM notice, Board's Report, and appointed a scrutinizer for e-voting.
This is a deeply negative event for shareholders — their equity value will effectively be cut by 98%, reflecting severe erosion of the company's net worth due to past losses. While the restructuring could help clean up the balance sheet and make future operations viable, existing shareholders face near-total loss of capital value.