News Corporate Actions Silicon Valley Infotech Limited Board Approves Scheme for Share Capital ReductionSilicon Valley Infotech Limited Board Approves Scheme for Share Capital Reduction
Silicon Valley Infotech Limited's board approved a share capital reduction scheme on January 27, 2026, proposing to reduce equity shares from 12,96,80,000 to 25,93,600 while maintaining Re.1 face value per share. The restructuring aims to offset accumulated losses and improve financial position without cash outflow, subject to shareholder and NCLT approvals.
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Silicon Valley Infotech Limited announced that its Board of Directors has approved a comprehensive Scheme of Arrangement for share capital reduction during a meeting held on January 27, 2026. The scheme, designed under Section 66 of the Companies Act, 2013, aims to restructure the company's capital base and improve its financial position.
Scheme Details and Structure
The approved scheme proposes a significant reduction in the company's equity share capital structure. The plan involves reducing the total number of equity shares while maintaining the face value of each share.
| Parameter: | Current Structure | Proposed Structure |
|---|---|---|
| Number of Equity Shares: | 12,96,80,000 | 25,93,600 |
| Face Value per Share: | Re.1 | Re.1 |
| Total Paid-up Capital: | Rs.12,96,80,000 | Rs.25,93,600 |
Strategic Rationale for Restructuring
The company has outlined several key reasons for implementing this capital reduction scheme:
- Balance Sheet Optimization: The reduction will provide a true and fair representation of the company's financial position by aligning share capital with available assets
- Loss Offset Mechanism: The capital reduction will be utilized to offset accumulated losses, improving the overall balance sheet without requiring cash outflow
- Enhanced Financial Health: The restructuring aims to position the company for future growth by eliminating accumulated losses and strengthening financial fundamentals
- Capital Structure Simplification: The reduction will create a more efficient and manageable shareholding base essential for sustainable growth
Regulatory Approval Process
The Board's approval is subject to obtaining necessary approvals from multiple stakeholders and regulatory bodies:
- Shareholders of the company
- Kolkata Bench of National Company Law Tribunal (NCLT)
- Other statutory and regulatory authorities as required
Impact Assessment
The company has provided detailed analysis of the scheme's expected effects:
| Impact Category: | Details |
|---|---|
| Shareholding Pattern: | No change in existing shareholding pattern |
| Promoter Benefits: | No specific benefits to promoter or promoter group |
| Creditor Impact: | No adverse effect on ability to honor commitments |
| Business Operations: | No impact on ordinary course of business |
The scheme does not involve any consideration to shareholders and maintains the rights of both promoter and public shareholders without alteration.
Meeting Details and Next Steps
The Board meeting commenced at 6:00 p.m. and concluded at 9:00 p.m. on January 27, 2026. The company has informed BSE Limited and The Calcutta Stock Exchange Limited about the decision in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
The scheme represents a strategic move to strengthen Silicon Valley Infotech Limited's financial foundation while maintaining operational continuity and stakeholder interests.
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