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)|
|Claris Life Sciences Limited||Claris Life Sciences||Pharma||1.00|
|Epiroc Mining India Limited||EPIROC||Transport||1,224.00|
|Healthcaps India Limited||HEALTHCAPS||Healthcare||227.00|
|Kitply Industries Limited||KITPLYIND||FMCG||0.02|
|Manjushree Plantations Limited||Manjushree Plant||Hotel or Catering||10.00|
|Yokogawa India Limited||YOKOGAWA||Electric Equipment||923.20|