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 |