Kedia Construction Reduces Share Capital and Completes Amalgamation with Kirti Investments Limited

Kedia Construction Reduces Share Capital and Completes Amalgamation with Kirti Investments Limited​

Kedia Construction Company Limited (KCCL) has executed a significant restructuring of its capital structure, completing both a substantial reduction in the face value of its equity shares and the amalgamation of Kirti Investments Limited into the Transferee Company. This comprehensive scheme aims to streamline operations, improve capital efficiency, and optimize organizational capability within the real estate sector.

The capital reduction pertains to the issued share capital of KCCL. Previously, the paid-up share capital stood at Rs 1,50,00,000 (Rupees One Crore Fifty Lakhs), represented by 30,00,000 equity shares with a face value of Rs 5/- per share. Under the scheme, the face value of each equity share has been reduced to Rs 1/- per share, bringing the total paid-up share capital of KCCL to Rs 30,00,000 (Rupees Thirty Lakhs).

This reduction and reorganization is an integral part of the broader scheme approved by the National Company Law Tribunal. The company set a record date of June 29, 2026, for this process.

Amalgamation Details and Share Swap Ratio​

The Scheme involves the amalgamation of Kirti Investments Limited (Transferor Company) with Kedia Construction Company Limited (Transferee Company).

As part of the merger, KCCL's authorized share capital was increased to accommodate the acquired interests from the Transferor Company. The consideration for this amalgamation is set out in a specific swap ratio. For every 100 equity shares having a face value of INR 5/- held in Kirti Investments Limited, the Transferee Company shall issue and allot 38 fully paid up equity shares with a face value of INR 1/- each.

The reduction of capital and the subsequent merger are intended to improve the financial structure of the Transferee Company, aligning its capital base with the size of its business operations. The amalgamation is expected to yield benefits such as achieving economies of scale by pooling resources and eliminating multiple record keeping requirements for both entities.

Capital Structure Highlights​

The following table summarizes the key changes to the share capital of Kedia Construction Company Limited (Transferee Company) following the implementation of the scheme:


The reduction in the face value of equity shares will cause such shares held by the Transferor Company to automatically stand cancelled without any necessity of them being surrendered to KCCL.

Rationale and Governance Structure​

The scheme aims to ensure that the public shareholders' stake remains consistent post-reduction, maintaining a holding percentage greater than 5% in the post-reduction paid-up share capital. The reduction does not involve any extinguishment or selective reduction but is uniform for all stakeholders, as per the scheme approved by the NCLT.

The operational benefits of the amalgamation include improved organizational capability and streamlined compliance, unifying legal and regulatory compliances previously required by both companies.

Stock Price Movement​

Kedia Construction Company Ltd shares settled at ₹4.89 on Wednesday, ticking up 4.94%. The stock remained locked throughout the trading session as its intraday range showed no movement, staying entirely at ₹4.89.