Silicon Valley Infotech Files Scheme for Share Capital Reduction Following Shareholder Approval

2 min read Updated on 13 Mar 2026, 03:06 PM

Reviewed by

Shriram SScanX News Team

AI Summary

Silicon Valley Infotech Limited has formally submitted its comprehensive Scheme of Reduction of Share Capital to stock exchanges following overwhelming shareholder approval at the EGM held on March 9, 2026. The scheme proposes to reduce the company's paid-up capital from ₹12,96,80,000 to ₹25,93,600 to address accumulated losses of ₹13,45,23,000 and improve the balance sheet for future fundraising activities.

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Silicon Valley Infotech Limited has formally submitted its Scheme of Reduction of Share Capital to BSE Limited and The Calcutta Stock Exchange Limited on March 13, 2026, following overwhelming shareholder approval at the company's 1st Extra-Ordinary General Meeting held on March 9, 2026. The submission was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Scheme Details and Capital Structure Changes

The comprehensive scheme, approved by the Board of Directors on January 27, 2026, and subsequently by shareholders, proposes significant changes to the company's capital structure. The scheme aims to address the company's accumulated losses and improve its financial position for future growth.

Parameter	Current Structure	Post-Reduction Structure
Paid-up Capital	₹12,96,80,000	₹25,93,600
Number of Shares	12,96,80,000 shares	25,93,600 shares
Face Value	₹1 per share	₹1 per share
Reduction Amount	-	₹12,70,86,400

Financial Rationale and Accumulated Losses

The scheme addresses the company's substantial accumulated losses of ₹13,45,23,000 as of September 30, 2025. The company has been experiencing financial challenges over the past five years, with the net worth standing at negative ₹48,43,000 as of September 30, 2025.

Financial Year	Annual Loss	Cumulative Loss
2020-2021	₹30,33,824	₹11,95,79,958
2021-2022	₹29,43,000	₹12,25,22,958
2022-2023	₹97,43,000	₹13,22,65,958
2023-2024	₹23,55,000	₹13,46,20,958
2024-2025	Profit ₹1,000	₹13,46,19,958
September 30, 2025	Profit ₹96,958	₹13,45,23,000

Shareholder Voting Results

The special resolution received exceptional support from shareholders across all categories, demonstrating strong confidence in the company's restructuring strategy.

Voting Category	Shares Held	Votes Polled	% Polled	Votes in Favour	% in Favour
Promoter Group	35,58,000	1,46,000	4.10%	1,46,000	100.00%
Public (E-Voting)	1,26,122,000	4,02,97,653	31.95%	4,02,97,626	99.9999%
Public (Poll)	1,26,122,000	30,82,967	2.44%	30,82,967	100.00%
Total	1,29,680,000	4,35,26,620	33.56%	4,35,26,593	99.9999%

Strategic Benefits and Future Outlook

The scheme is designed to clean up the company's balance sheet and enable future fundraising capabilities. Key benefits include presenting a more accurate financial position, facilitating efforts to raise funds from banks and financial institutions, and enabling fresh capital raising through private placement. The reduction does not involve any payment to shareholders or impact on creditor rights.

Regulatory Process and Next Steps

The company will now proceed with filing an application to the National Company Law Tribunal (NCLT) under Section 66 of the Companies Act, 2013, for final approval of the scheme. The shareholding pattern will remain unchanged, with promoters maintaining 2.74% and public shareholders holding 97.26% of the reduced capital structure.

CS Atul Kumar Labh of A. K. Labh & Co., Company Secretaries, served as the scrutinizer for the EGM, confirming that the voting process was conducted transparently in accordance with applicable regulations.

Source: None/Company/INE913A01024/849678c2-8df7-4efd-bb60-617a132a45b3.pdf