News Corporate Actions Quintegra Solutions Files NCLT Petition for Share Capital Reduction to Address Accumulated LossesQuintegra Solutions Files NCLT Petition for Share Capital Reduction to Address Accumulated Losses
Quintegra Solutions Limited filed a petition with NCLT Chennai on February 24, 2026, for share capital reduction from Rs.26,81,38,300 to Rs.2,68,13,830 by reducing face value from Rs.10 to Re.1 per share. The reduction amount of Rs.24,13,24,470 will address accumulated losses of Rs.178,12,13,081 as of March 31, 2025. The proposal, approved by 99.69% shareholder votes in September 2025, includes utilizing securities premium and reserves totaling Rs.1,38,31,37,953 to further reduce losses to Rs.15,67,50,658.
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Quintegra Solutions Limited has filed a petition with the National Company Law Tribunal (NCLT) Chennai on February 24, 2026, seeking approval for a comprehensive share capital reduction scheme. The application, filed under Sections 66 and 52 of the Companies Act 2013, aims to address the company's substantial accumulated losses and improve its financial position for future growth.
Capital Reduction Structure
The company proposes to reduce its issued, subscribed and paid-up equity share capital significantly while maintaining the same number of shares. The reduction involves changing the face value of equity shares from Rs.10 to Re.1 each, affecting 2,68,13,830 equity shares.
| Parameter: | Current Structure | Proposed Structure |
|---|---|---|
| Share Capital: | Rs.26,81,38,300 | Rs.2,68,13,830 |
| Number of Shares: | 2,68,13,830 | 2,68,13,830 |
| Face Value per Share: | Rs.10 | Re.1 |
| Reduction Amount: | - | Rs.24,13,24,470 |
Loss Adjustment Mechanism
The capital reduction forms part of a broader financial restructuring to address accumulated losses of Rs.178,12,13,081 as of March 31, 2025. The company plans a two-stage adjustment process to clean up its balance sheet.
The initial reduction amount of Rs.24,13,24,470 will be applied directly against accumulated losses. Subsequently, the remaining net loss of Rs.153,98,88,611 will be adjusted against available reserves and premium accounts.
| Reserve Type: | Available Amount (Rs.) | Utilization (Rs.) | Balance (Rs.) |
|---|---|---|---|
| Securities Premium: | 43,14,33,100 | 43,14,33,100 | 0 |
| General Reserve: | 4,94,62,799 | 4,94,62,799 | 0 |
| Capital Reserve: | 90,22,42,054 | 90,22,42,054 | 0 |
| Total Reserves: | 1,38,31,37,953 | 1,38,31,37,953 | 0 |
Shareholder Approval and Compliance
The proposal received overwhelming shareholder support at the Annual General Meeting held on September 24, 2025. The special resolution was approved through remote e-voting with strong participation from the shareholder base.
| Voting Details: | Shares |
|---|---|
| Total Shares Present: | 788,993 |
| Votes in Favor: | 786,582 |
| Votes Against: | 2,411 |
| Approval Percentage: | 99.69% |
The voting results exceeded the statutory requirement of three-fourths majority for special resolutions under the Companies Act 2013. Mr. A Rangarajan, Practicing Company Secretary, served as the scrutinizer for the voting process.
Business Background and Rationale
Quintegra Solutions, incorporated in 1994 as a consulting company specializing in custom software development and application management, faced significant challenges following acquisitions made during 2007-08. The company acquired Jadelite Tech Singapore, Valley US Inc., and PA Corporation in the USA for Rs.99.00 crores.
The 2008 global financial crisis and sub-prime crisis severely impacted these acquisitions, resulting in substantial bad debts and business losses. The company subsequently entered into a One Time Settlement (OTS) with SBI in 2015 and currently has no dues to secured creditors.
Post-Reduction Financial Position
Following the proposed capital reduction and loss adjustments, the company's financial structure will be significantly streamlined. The total shareholders' funds will remain at Rs.(12,99,36,828), but with reduced accumulated losses of Rs.15,67,50,658 compared to the current Rs.178,12,13,081.
| Financial Component: | Pre-Reduction (Rs.) | Post-Reduction (Rs.) |
|---|---|---|
| Paid-up Share Capital: | 26,81,38,300 | 2,68,13,830 |
| Securities Premium: | 43,14,33,100 | 0 |
| Accumulated Losses: | (178,12,13,081) | (15,67,50,658) |
| Total Shareholders' Funds: | (12,99,36,828) | (12,99,36,828) |
The company has confirmed that no cash payout to shareholders is involved in this capital reduction, and the proposal does not affect creditor interests. The restructuring aims to enable the company to attract new investors and raise funds for business revival in the growing IT market.
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