News Corporate Actions ATN International Limited Schedules EGM for Share Capital Reduction to Address Accumulated LossesATN International Limited Schedules EGM for Share Capital Reduction to Address Accumulated Losses
ATN International Limited has scheduled an extraordinary general meeting for March 09, 2026, to approve a substantial share capital reduction. The company proposes to reduce its paid-up capital from Rs. 15,78,00,000 to Rs. 31,56,000 by cancelling 3,86,61,000 equity shares, representing a 98.00% reduction. This move aims to set off Rs. 15,46,44,000 against total accumulated losses of Rs. 23,49,82,000 as on September 30, 2025, requiring both shareholder approval and NCLT confirmation.
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ATN International Limited has announced an extraordinary general meeting (EGM) scheduled for March 09, 2026, to seek shareholder approval for a substantial reduction in share capital aimed at addressing the company's accumulated losses.
Meeting Details and Agenda
The EGM will be held on Monday, March 09, 2026, at 01:30 PM at the company's registered office located at 10 Princep Street, 2nd Floor, Kolkata-700072. The primary agenda involves approving a special resolution for the reduction of share capital under Section 66 of the Companies Act, 2013.
| Parameter: | Details |
|---|---|
| Meeting Date: | March 09, 2026 |
| Time: | 01:30 PM |
| Venue: | 10 Princep Street, 2nd Floor, Kolkata-700072 |
| Meeting Type: | Extraordinary General Meeting |
| Resolution Type: | Special Resolution |
Proposed Capital Reduction Structure
The company proposes to significantly reduce its share capital to address mounting accumulated losses. The reduction involves cancelling and extinguishing a substantial portion of existing equity shares.
| Capital Structure: | Current | Post-Reduction |
|---|---|---|
| Paid-up Capital: | Rs. 15,78,00,000 | Rs. 31,56,000 |
| Number of Shares: | 3,94,50,000 | 7,89,000 |
| Face Value per Share: | Rs. 4 | Rs. 4 |
| Shares to be Cancelled: | 3,86,61,000 | - |
| Reduction Percentage: | 98.00% | - |
Financial Position and Accumulated Losses
As on September 30, 2025, ATN International Limited reported total accumulated losses of Rs. 23,49,82,000. The company proposes to set off Rs. 15,46,44,000 of these losses against its paid-up capital.
| Financial Metric: | Amount (Rs.) |
|---|---|
| Total Accumulated Losses: | 23,49,82,000 |
| Proposed Set-off Amount: | 15,46,44,000 |
| Remaining Losses Post-Reduction: | 8,03,38,000 |
| Current Net Worth: | (7,71,82,000) |
The company has been experiencing consistent losses over the past five financial years, with the most significant loss of Rs. 5,54,07,298 recorded in 2020-2021.
Regulatory Approvals and Process
The proposed capital reduction requires multiple levels of approval to become effective. The company must obtain consent from shareholders through a special resolution and subsequent confirmation from the National Company Law Tribunal (NCLT).
Key regulatory requirements include:
- Shareholder approval via special resolution at the EGM
- NCLT confirmation under Section 66 of the Companies Act, 2013
- Filing of certified copies with the Registrar of Companies
- Compliance with SEBI listing regulations
Shareholder Impact and Voting Process
The capital reduction will not involve any cash outflow to shareholders, as it represents a book adjustment to eliminate accumulated losses. The shareholding pattern and percentage holdings of existing shareholders will remain unchanged.
| Voting Details: | Information |
|---|---|
| E-voting Period: | March 06-08, 2026 |
| Cut-off Date: | March 02, 2026 |
| Record Date Closure: | March 03-09, 2026 |
| Scrutinizer: | M/s. A.K Labh & Co. |
Shareholders can participate in the voting process through remote e-voting facilities provided by CDSL or attend the physical meeting. The company has appointed Atul Kumar Labh, Practicing Company Secretary, as the scrutinizer for the e-voting process.
Strategic Rationale
The management believes this capital reduction will enable the company to present a more accurate financial position and facilitate future fundraising efforts. By eliminating a significant portion of accumulated losses from the balance sheet, the company aims to improve its ability to access capital markets and financial institutions for business expansion.
The proposed scheme does not envisage any transfer of properties or liabilities and will not adversely affect creditors' interests, as no payments are involved in the capital reduction process.
Source:
Historical Stock Returns for Amit International
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.84% | -4.33% | +17.50% | +19.37% | -22.47% | +57.32% |
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