News Corporate Actions Cistro Telelink Limited Sets Record Date for Share Capital Reduction Following NCLT ApprovalCistro Telelink Limited Sets Record Date for Share Capital Reduction Following NCLT Approval
Cistro Telelink Limited has set March 6, 2026 as the record date for a 40% reduction in paid-up share capital from Rs. 5,13,43,000 to Rs. 3,08,05,800, following NCLT approval on January 21, 2026. The restructuring aims to offset Rs. 2,05,37,200 in accumulated losses and improve the balance sheet for future funding initiatives. The scheme received 99.93% shareholder approval and has completed all regulatory compliance requirements.
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Cistro Telelink Limited has formally announced the fixation of March 6, 2026 as the record date for implementing a substantial reduction in its paid-up share capital, following regulatory approval from the National Company Law Tribunal (NCLT).
NCLT Approval and Capital Structure Changes
The Hon'ble National Company Law Tribunal, Indore Bench, approved the company's scheme for capital reduction through its order dated January 21, 2026. The approval enables Cistro Telelink to proceed with a significant restructuring of its equity base.
| Parameter: | Pre-Reduction | Post-Reduction |
|---|---|---|
| Paid-up Share Capital: | Rs. 5,13,43,000 | Rs. 3,08,05,800 |
| Number of Equity Shares: | 5,13,43,000 | 3,08,05,800 |
| Face Value per Share: | Rs. 1 | Rs. 1 |
| Reduction Amount: | - | Rs. 2,05,37,200 |
Financial Restructuring Strategy
The capital reduction represents a 40% decrease in the company's paid-up equity share capital. This strategic move is designed to adjust accumulated losses against the share capital, thereby improving the company's balance sheet position. The company's accumulated losses stood at Rs. 216.27 lakhs as of March 31, 2024, which will be reduced to Rs. 10.90 lakhs post-implementation.
Regulatory Compliance and Approvals
The scheme received overwhelming shareholder support, with 47 out of 49 equity shareholders present at the Annual General Meeting held on July 25, 2024 voting in favor. This represented 1,97,39,000 equity shares, constituting 99.93% of the total value of shares held by shareholders present at the meeting.
| Approval Details: | Information |
|---|---|
| NCLT Order Date: | January 21, 2026 |
| Shareholder Approval: | 99.93% in favor |
| Record Date: | March 6, 2026 |
| ROC Registration: | February 12, 2026 |
The company has fulfilled all regulatory requirements, including obtaining consent from its sole unsecured creditor for Rs. 50,000 and ensuring compliance with BSE listing obligations through its observation letter dated December 9, 2024.
Business Rationale and Future Outlook
Cistro Telelink cited severe financial distress during the Covid-19 pandemic as a key factor necessitating this capital restructuring. The company's business operations were significantly disrupted, rendering it inoperative for several years and resulting in substantial accumulated losses.
The management has indicated plans to secure funding in the near future for restructuring business operations. The capital reduction is intended to facilitate investor participation and achieve business objectives by presenting a cleaner balance sheet to potential investors.
Implementation Timeline
With the record date set for March 6, 2026, the capital reduction will become effective from that date. The company has completed all necessary regulatory filings, including Form INC-28 with the Registrar of Companies on February 5, 2026, and received the Certificate of Registration of Order Confirming Reduction of Capital on February 12, 2026.
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