Abhishek Corporation has underdone a resolution as per the filing here. The proposal outlines several corporate actions concerning the existing promoter’s and public shareholders’ equity shares.
1. Extinguishment/Cancellation of Promoter’s Shares
- Current Holdings: The existing promoter holds 92,25,495 equity shares.
- Action: These shares will be extinguished or cancelled.
- Consideration: The cancellation will occur for a consideration of Rs. NIL, meaning no monetary compensation will be provided for these shares.
2. Reduction and Consolidation of Public Shareholding
- Current Holdings: The public holds 67,82,967 equity shares with a face value of Rs. 10 each.
- Reduction of Face Value: The face value of each share will be reduced from Rs. 10 to Rs. 0.25. This means Rs. 9.75 per share will be cancelled.
- Consolidation of Shares: Immediately after the reduction, the shares will be consolidated. For every 40 shares held by a public shareholder (each with a reduced face value of Rs. 0.25), 1 new share with a face value of Rs. 10 will be issued.
- Implication: This effectively consolidates the shares to maintain the same overall capital but reduces the number of shares each shareholder holds.
- Fractional Shares: Any resulting fractional shares will be allotted to Mr. Deepak C. Choudhari as a trustee on behalf of the shareholders entitled to these fractions.
- Sale of Fractional Shares: Once trading resumes, the fractional shares will be sold in the open market, and the proceeds will be distributed to the shareholders who were entitled to these fractional shares.
3. Allotment of New Shares to New Promoters
- Allotment: 32,00,000 new equity shares will be allotted to the successful bidder, identified as the new promoters.
These actions typically aim to restructure the company’s equity base, often to facilitate a change in control, improve financial health, or streamline the share structure for strategic reasons.