NCLT Confirms Share Capital Reduction for Tridev Infraestates as part of Restructuring
The National Company Law Tribunal (NCLT) has confirmed the reduction of share capital for Tridev Infraestates Limited, which operates under the name change from Ashutosh Paper Mills Limited. The decision addresses a corporate restructuring that involves significant changes to the company's equity structure, driven by accumulated losses.Following the order dated June 30, 2026, the company’s issued and paid-up share capital is being reduced by 50% on a proportionate basis. This measure is effective following the completion of the Scheme for Reduction of Capital.
The scheme mandates that the paid-up value of each equity share be reduced from Rs. 10 per share to Rs. 5 per share. Simultaneously, the company will execute a consolidation process under Section 61 of the Companies Act, 2013. As part of this, every two equity shares of Rs. 5 each will be consolidated into one equity share of Rs. 10 each, fully paid up.
The reduction was formalized to align the relationship between the company's capital and its assets, and to accurately reflect the financial position. The Board of Directors had previously decided to write off accumulated losses against this reduction in paid-up share capital, as per Section 66 of the Companies Act, 2013.
The transformation of the company’s capital is detailed below:
| Financial Metric | Pre-Scheme Structure | Post-Scheme Structure |
|---|---|---|
| Issued and Paid-up Equity Share Capital Value | Rs. 6,52,54,000 | Rs. 3,26,27,000 |
| Number of Equity Shares | 65,25,400 | 32,62,700 |
| Face and Paid-up Value per Share (Post-Scheme) | Rs. 10 per share | Rs. 10 per share |
The decision to reduce capital was necessitated by the accumulated losses incurred by the company. As of March 31, 2023, Tridev Infraestates Limited had recorded accumulated losses totaling Rs. 3,83,84,350. The company’s financial statements reflected a negative reserves and surplus of Rs. 3,26,02,694 against the paid-up share capital prior to the reduction.
The NCLT confirmed the scheme, noting that the proposed action—which involves both reduction in share value and subsequent consolidation—will be executed simultaneously upon the scheme coming into effect.
Stock Price Movement
Ashutosh Paper Mills Ltd settled at ₹6.21 on Thursday, ticking up by 0.16% in the close of trade. The shares traded completely flat throughout the day, as the high and low were both locked at ₹6.21.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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