NCLT Approves Reduction of Share Capital for TCFC Finance Limited
The National Company Law Tribunal (NCLT), Mumbai Bench, issued an order on April 22, 2026, approving the scheme for the reduction of the equity share capital of TCFC Finance Limited. The approval solidifies changes to the company's share structure, impacting its capital base and share count.The reduction was sought under Section 66 and Section 52 of the Companies Act, 2013.
Capital Structure Changes
The NCLT's order confirmed the reduction of the company's share capital. The scheme involved cancelling and extinguishing 5,33,334 equity shares of INR 10 each, which were held by the company itself.The financial details of the capital reduction are summarized below:
| Parameter | Before Reduction | Reduction Details | After Reduction |
|---|---|---|---|
| Total Capital Value | INR 10,48,21,290 | INR 53,33,340 | INR 9,94,87,950 |
| Total Number of Shares | 1,04,82,129 | 5,33,334 | 99,48,795 |
| Face Value Per Share | INR 10 | N/A | INR 10 |
The reduction mandated a corresponding debit to the outstanding paid up equity share capital for INR 53,33,340, and a credit to the retained earnings account of the Company for the same amount.
Company Status and Board Action
TCFC Finance Limited, a Non-Banking Financial Institution (NBFC), has been operational since August 29, 1990. The company is registered with the Reserve Bank of India (RBI) under Section 45-IA of the Reserve Bank of India Act, 1934, and initially received its non-banking finance Company registration on August 12, 1998.Prior to the NCLT approval, the Board of Directors, through a resolution dated March 28, 2024, unanimously approved the cancellation of 5,33,334 equity shares of INR 10 each, held by the Company, without providing any consideration.
This proposal was further approved by the members of the Company via a Special Resolution passed at the Annual General Meeting on September 26, 2025.
The Tribunal's order formalized these steps, allowing the reduction of the equity share capital from INR 10,48,21,290 to INR 9,94,87,950.
Stock Price Movement
TCFC Finance Ltd settled at ₹29.60, declining 2.79% at the close of trade today. The shares ranged significantly today, swinging between a low of ₹28.00 and a high of ₹31.60.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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