Balkrishna Paper Mills539251Capital reduction
NCLT admits petition for reduction of share capital; next hearing 21 January 2027
Balkrishna Paper Mills has replied to a BSE e-mail of 21 October 2026 about its 16 October announcement, and has refiled it under the head 'General Update' instead of 'Announcement'.
By ScoutQuest · · 4 min read
- Accumulated losses to be adjusted
- ~Rs. 52.28 crore
- Equity face value change
- Rs. 10 each to Re. 1 each
- Next NCLT hearing
- 21 January 2027
What the company has said
- NCLT (Mumbai, Court IV) heard the company's petition for a Scheme of Reduction of Share Capital on 14 October 2026 and admitted it for hearing. The next date of hearing is 21 January 2027.
- The company describes that order as interim in nature, containing mainly procedural directions for issuing notices and publishing newspaper advertisements under the Companies Act, 2013.
- The company says it had earlier shared the intimation of this order under the head 'Announcement' instead of 'General Update', and has now shared a fresh announcement under 'General Update'.
The capital reduction as set out in the order
- Accumulated losses of ~Rs. 52.28 crore are to be adjusted, first from the Securities Premium Reserve of ~Rs. 23.29 crore, and the remaining balance by reducing the paid-up equity share capital.
- Paid-up equity share capital of Rs. 32,21,95,320, divided into ~3.22 crore equity shares of Rs. 10 each, is to become ~Rs. 3.22 crore, divided into ~3.22 crore equity shares of Re. 1 each.
- The entire issued and paid-up preference share capital of Rs. 110 crore, divided into 1,10,00,000 6.5% Non-Cumulative Redeemable Preference Shares of Rs. 100 each, is to be reduced. The consideration payable to preference shareholders is to be discharged when adequate funds become available; until then the amount is to be shown as an unsecured, non-interest bearing loan in the books.
- No payment or consideration is proposed to equity shareholders.
- The order records that the face value and paid-up value of all equity shares will reduce, with no impact on the shareholding percentage of equity shareholders before and after the reduction.
Why the company has proposed this
- Losses in the paper business have eroded net worth; as per the limited reviewed financial statements for the six months ended 30 September 2025, accumulated losses stand at ~Rs. 278.39 crore. After the adjustments above, accumulated losses would be Rs. 2,26,10,82,614.
- The company states it currently does not have any major business operations, and that the management is evaluating new business opportunities, including the commencement of real estate-related activities.
- It also states that given its financial condition it will not have adequate profits, reserves or liquidity to redeem the preference shares in the foreseeable future.
- The purpose stated is to make the capital employed reflect a realistic value and to present a true and fair view of the financial position.
Who holds the shares
- Promoter and Promoter Group: 21 holders holding 1,93,15,802 equity shares.
- Public: 14,815 holders holding 1,29,03,730 equity shares.
- Total: 14,836 holders holding ~3.22 crore equity shares.
Creditors named in the order
- 1 secured creditor with a value of Rs. 24,50,00,000 as on 29 June 2026.
- 16 unsecured creditors with a value of ~Rs. 42.28 crore as on 29 June 2026.
Who has already approved it
- The Board approved the special resolution unanimously at its meeting on 23 December 2025.
- Equity shareholders approved it through postal ballot on 2 July 2026; preference shareholders on 19 June 2026.
What the NCLT directions involve
- Notices in Form RSC-3 are to go to the secured and unsecured creditors, who may submit representations or objections within three months of receipt; if none is received, it is presumed they have no objection.
- Notices in Form RSC-2 are to go to the Regional Director (Western Region), the Registrar of Companies, the Ministry of Corporate Affairs, SEBI, BSE and NSE, and the Income Tax authorities, with three months to make representations.
- A notice is to be published in two newspapers — Business Standard in English and Navshakti in Marathi (or another newspaper) — stating the amount of the proposed reduction, with three months to file objections.
- An affidavit in Form RSC-5 confirming dispatch and publication is to be shared.
What a shareholder can take away
- This announcement is a clarification and refiling of an earlier intimation, and the company states that the interim order is not in itself a material development on the scheme.
- The scheme, as described, would shrink the face value of each equity share from Rs. 10 to Re. 1 with no cash payout, while the number of shares held and the percentage shareholding stay the same.
- The process is still before the tribunal, with the petition returnable on 21 January 2027 and a window for creditors and authorities to raise objections.
Also from Balkrishna Paper Mills
NCLT admits petition for reduction of share capital; equity face value proposed to be cut from Rs. 10 to Re. 1
16 Oct 2026
More numbers
- Accumulated losses as at 30 September 2025Rs. 2,78,39,19,643
- Securities Premium Reserve to be usedRs. 23,28,61,241
- Paid-up equity share capital before reductionRs. 32,21,95,320
- Equity shares outstanding3,22,19,532
- Existing face value per equity shareRs. 10
- Reduced face value per equity shareRe. 1
- Preference share capital being reducedRs. 1,10,00,00,000
- Accumulated losses after adjustments2,26,10,82,614
Source: BSE · 21 Oct 2026
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