Virgo Global Ltd Approves Capital Reduction Scheme to Offset Accumulated Losses

Virgo Global Ltd Approves Capital Reduction Scheme to Offset Accumulated Losses​

Virgo Global Ltd has approved a comprehensive Scheme of Reduction of Capital with its shareholders and creditors. The measure aims to extinguish the debit balance of accumulated losses by setting them off against the paid-up equity share capital, thereby restoring the Balance Sheet to accurately reflect the true financial position of the company.

The company announced the board meeting decisions on April 18, 2026.

Financial Performance Update​

The Board of Directors approved the audited financial results for the Quarter and Year ended March 31, 2026. These results were prepared in accordance with Indian Accounting Standards (Ind AS), and the company also took on record the corresponding audit report issued by M/s. Sharad Chandra Toshniwal & Co Chartered Accountants.

The standalone financial statements reveal key performance figures for the year ended March 31, 2026:

Details of Capital Restructuring​

The centerpiece of the board meeting was the approval of the Scheme of Reduction of Capital, executed under Section 66 of the Companies Act, 2013.

The stated purpose of the scheme is to address substantial accumulated losses resulting from adverse commercial conditions over several years. These losses have, according to the company, eroded the net worth and created a mismatch between the paid-up share capital and the actual realisable value of the company's assets. The reduction seeks to write off the debit balance of accumulated losses by setting it off against the paid-up equity share capital.

The proposed scheme involves a significant quantitative shift in the company's capital structure.

The existing paid-up equity share capital of Virgo Global Ltd., which stood at Rs. 4,20,17,200 (Rupees Four Crores Twenty Lakhs Seventeen Thousand and Two Hundred only), is proposed to be reduced to Rs. 58,82,408 (Rupees Fifty Eight Lakhs Eighty Two Thousand Four Hundred and Eight only).

This reduction is realized through the cancellation and extinguishing of 90,33,698 fully paid up equity shares, each having a face value of Rs. 0.04. The aggregate value of the cancelled shares amounts to Rs. 3,61,34,792.

The face value of the share remains the same following the reduction, but the number of shares will decrease. This reduction of paid-up share capital is intended to bring the company’s balance sheet into line with its current financial standing.

Operational Timeline​

The Board determined that the Scheme requires necessary shareholder and creditor approvals, as well as necessary approvals from the Hyderabad Bench of the National Company Law Tribunal (NCLT).

To secure shareholder mandate, the company announced the convening of an Extraordinary General Meeting (EGM) on Friday, May 15, 2026, for the purpose of approving the Scheme.

Furthermore, the company provided details for the remote e-voting process for the EGM. The e-voting period is scheduled to commence on Tuesday, May 12, 2026, and conclude on Thursday, May 14, 2026.

Management reported that the Board meeting, which saw the approval of these schemes, commenced at 2:30 p.m. and concluded at 3:30 p.m. on April 18, 2026.

Stock Price Movement​

Virgo Global Ltd shares finished the Friday session at ₹5.56, marking a strong gain of +4.91% compared to its prior close. Throughout the day, the stock saw action, trading within a range from ₹5.45 to ₹5.56.

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