This is to inform you that the Scheme for Reduction of Share Capital of the Company is approved by the Shareholders of the Company at EGM held on 09th March, 2026
Awaiting price reaction for this filing.
Shareholders of Silicon Valley Infotech Ltd approved a Scheme of Reduction of Share Capital at an Extra-ordinary General Meeting held on 9 March 2026. The move will extinguish 12,70,86,400 equity shares (about 98% of existing paid-up capital), reducing paid-up capital from Rs. 12.97 crore to Rs. 25.94 lakh (12,96,80,000 shares to 25,93,600 shares of Re. 1 each). The purpose is to set off accumulated losses of around Rs. 13.45 crore that have pushed the company's net worth into the negative (negative Rs. 48.43 lakh as on 30 September 2025). The scheme is filed under Section 66 of the Companies Act, 2013, and still requires sanction from the NCLT before it can take effect. No money is being paid out to shareholders and no creditor claims are being affected — it is purely a balance sheet cleanup.
This is significantly negative for existing shareholders on a quantitative basis — each shareholder's share count will drop to roughly 2% of what they currently hold, even though the percentage of ownership and listing status will remain unchanged. The company is using this step to wipe out losses and present a cleaner balance sheet, which may help it raise fresh capital in the future, but the immediate effect is a sharp contraction in the number of outstanding shares and a clear signal of prior years of weak financial performance.