Shareholders approve capital reduction and consolidation; paid-up capital to fall to Rs. 1,59,60,000, subject to NCLT

Shareholders approved the Scheme of Reduction of Capital and Consolidation at the AGM held on Tuesday, September 29, 2026.

Mon 5 Oct 2026

Existing paid-up capital

Rs.79,80,00,000 (79,80,00,000 shares of Re.1)

Reduced paid-up capital

Rs. 1,59,60,000

Shares cancelled and extinguished

78,20,40,000 shares of Re.1 each, aggregating Rs. 78,20,40,000

Consolidated share capital

15,96,000 shares of Rs.10 each

Approval status

Subject to NCLT, Bench at Kolkata confirmation

What was approved

The shareholders of Shree Securities Ltd approved the Scheme of Reduction of Capital and Consolidation at the 33rd Annual General Meeting held on Tuesday, September 29, 2026. The Board had approved the scheme at its meeting held on Friday, September 04, 2026. The scheme is subject to confirmation by the National Company Law Tribunal, Bench at Kolkata.

The reduction, in numbers

• Existing paid-up equity share capital: Rs.79,80,00,000, comprising 79,80,00,000 fully paid equity shares of Re.1 each.
• Reduced paid-up equity share capital: Rs. 1,59,60,000, comprising 1,59,60,000 fully paid equity shares of Re.1 each.
• Shares to be cancelled and extinguished: 78,20,40,000 fully paid equity shares of Re.1 each, aggregating Rs. 78,20,40,000.
• The cancellation is on a proportionate basis, according to the shareholding of the equity shareholders whose names appear in the register of members as on the Record Date.

Where the cancelled capital goes

The approved accounting treatment is that Rs. 78,20,40,000 is reduced from the Paid Up Equity Share Capital Account, and an equivalent amount is added to the Reserves and Surplus Account, that is, reduced from the accumulated losses of the company. In simple terms, the capital being cancelled is used to set off accumulated losses.

The consolidation

• After the reduction, the capital of Rs. 1,59,60,000 comprising 1,59,60,000 shares of Re.1 each is consolidated into Rs. 1,59,60,000 comprising 15,96,000 fully paid equity shares of Rs.10 each.
• Each eligible shareholder receives shares in proportion to their holding as on the Record Date, subject to adjustment for fractional entitlements.

Fractional entitlements

• No fractional shares will be issued.
• The fractions will be aggregated into whole shares and allotted to a trustee nominated by the Board, who holds them in trust for the shareholders entitled to them.
• The trustee will sell these shares in the market within 90 days from the Record Date and distribute the net sale proceeds proportionately, after deduction of applicable taxes and expenses.

Effective Date and Record Date

• The Effective Date is the date on which the certified copy of the Tribunal's order confirming the reduction, together with the minute approved by the Tribunal, is shared with the Registrar of Companies at Kolkata and the certificate of registration is issued.
• After the Effective Date, the Board will fix the Record Date.
• For shares held in physical form, existing certificates may be surrendered for cancellation, and from the date new certificates are issued the old ones are deemed cancelled. For shares held in demat form, the adjustment is made through the depositories.

Other resolutions at the same AGM

• M/s. Sunit M Chhatbar & Co. (Firm Registration No.: 141068W) appointed as the statutory auditor, holding office until the conclusion of the 38th Annual General Meeting to be held in the financial year 2030-31.
• Consent to advance loans, give guarantees and/or provide security in respect of entities where a director is or will be deemed to be interested, within the aggregate limits set out in Section 185, in one or more tranches.
• Consent for loans, guarantees, securities and investments up to an amount not exceeding Rs. 100 Crores.
• The limit of total shareholding of all registered foreign portfolio investors / foreign institutional investors put together increased to 49% of the paid-up equity share capital.
• Mr. Udayan S Kachchhy (DIN: 10153762) appointed as a Non-Executive Independent Director, holding office from 04th September, 2026 up to 03rd September, 2031.

What a retail shareholder may note

• The number of shares held changes after the Record Date, as the total number of shares in the company falls sharply.
• The reduction is a book adjustment against accumulated losses; the cancelled capital is not paid out to shareholders.
• The changes take effect only after the Effective Date, which follows the Tribunal's confirmation and the update with the Registrar of Companies.
• Watch for the Record Date announcement and any communication about fractional entitlements.

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