Reduction of share capital simply means a reduction of issued, subscribed, and paid-up share capital of the company. A company can reduce its share capital, by making payments to shareholders at the Fair Value of Companies shares. Capital reductions of Shares are mostly done through share cancellations, paid-back capital, or share repurchases (buybacks and exit offers). Reduction of share capital is used to make the capital structure more efficient & easier. The capital reduction can be used to distribute surplus cash, reserves & dividends to shareholders. A company must comply with rules & regulations and must obtain Regulator's & Legal authority’s approvals, before reducing share capital.
Many Unlisted and Delisted companies opted for a reduction of share capital in India. Details of some companies where shares of Minority shareholders were canceled or reduced are as under.
| Company Name | Scrip Name | Sector | Last Traded Price (LTP) |
|---|---|---|---|
| Ahlcon Parenterals India Limited | Ahlcon Parenterals | Pharma | 0.10 |
| Atlas Copco India Private Limited | Atlas Copco | Equipment | 10,000.00 |
| Claris Life Sciences Limited | Claris Life Sciences | Pharma | 1.00 |
| Eastern Investments Limited | Eastern Investments | Financial Service | 3,800.00 |
| Electronica Plastic Machines Private Limited | Electronica Plastic | Equipment | 4,500.00 |
| Epiroc Mining India Private Limited | EPIROC | Transport | 1,224.00 |
| Fairfield Atlas Limited | FAIRFIELD | Auto Components | 275.00 |
| Hella India Lighting Limited | Hella India | Auto Components | 860.00 |
| Infinite Computer Solutions India Limited | Infinite Computer | IT, Software | 405.00 |
| Kitply Industries Limited | KITPLYIND | FMCG | 0.02 |
| Lotte India Corporation Limited | Lotte India | Other | 886.00 |
| Manjushree Plantations Limited | Manjushree Plantations | Tea, Coffee & Plantation | 10.00 |
| Minosha India Limited | Minosha India | Other | 282.00 |
| Panasonic AVC Networks India Company Limited | Panasonic AVC | Other | 29.00 |
| Reliance Retail Limited | RRL | Retail | 1,275.00 |
| SM Dyechem Limited | SM Dyechem | Dyes & Pigment | 0.10 |
| Smile Microfinance Limited | Smile Microfinance | Financial Service | 51.00 |
| Tulya Alloy Castings Limited | Tulya Alloy | Metal, Steel & Iron | 10.01 |
| Xerox India Limited | XEROX | Office Automation | 74.10 |
| Yokogawa India Limited | YOKOGAWA | Electric Equipment | 923.20 |