TCFC Finance Gets NCLT Approval for Capital Reduction, Reports Strong Q1 Results
TCFC Finance Limited has received NCLT approval for its capital reduction petition, seeking to reduce equity share capital from ₹10.48 crores to ₹9.95 crores by cancelling 5.33 lakh shares. The tribunal has scheduled the next hearing for March 20, 2026, and directed compliance with procedural requirements including creditor notifications and newspaper publications. The company had earlier reported strong Q1 financial performance with significant turnaround in profitability.
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TCFC Finance Limited, a non-banking financial company (NBFC), has received a significant regulatory approval from the National Company Law Tribunal (NCLT) for its proposed capital reduction scheme. The company had earlier reported strong financial results for the first quarter and announced key management changes.
NCLT Approves Capital Reduction Petition
The National Company Law Tribunal, Mumbai Bench, has admitted TCFC Finance's petition for capital reduction in its order dated December 5, 2025. The tribunal has scheduled the next hearing for March 20, 2026, and directed the company to comply with necessary procedural requirements.
| Parameter: | Current Structure | Proposed Structure |
|---|---|---|
| Paid-up Capital: | ₹10.48 crores | ₹9.95 crores |
| Number of Shares: | 1,04,82,129 shares | 99,48,795 shares |
| Shares to be Cancelled: | 5,33,334 shares | - |
| Face Value per Share: | ₹10 | ₹10 |
The company seeks to reduce its issued, subscribed and paid-up equity share capital from ₹10.48 crores comprising 1,04,82,129 equity shares to ₹9.95 crores divided into 99,48,795 equity shares by cancelling 5,33,334 shares currently held by the company without any consideration.
Compliance Requirements
The NCLT has directed TCFC Finance to complete several procedural steps within seven days of the order:
- Serve notices to creditors in Form RSC-3 via registered post, speed post, hand delivery, or email
- Notify regulatory authorities including Ministry of Corporate Affairs, Registrar of Companies, Reserve Bank of India, and Income Tax authorities
- Publish notices in English (Financial Express) and regional language (Lakshadeep) newspapers
- File affidavit confirming dispatch and publication of notices
Stakeholders have three months from receipt of notice to submit representations or objections to the tribunal.
Strong Q1 Financial Performance
Earlier, the company had reported robust financial results for the first quarter ended June 30:
| Particulars (₹ in Lakhs): | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Total Income: | 505.85 | -364.27 | 238.90% |
| Profit After Tax: | 362.19 | -303.55 | 219.30% |
| Earnings Per Share (₹): | 3.46 | -2.90 | 219.30% |
The company's total income improved significantly to ₹505.85 lakhs from negative ₹364.27 lakhs in the previous year's corresponding quarter. Profit after tax surged to ₹362.19 lakhs compared to a loss of ₹303.55 lakhs year-over-year.
Management Continuity
The Board of Directors had approved the re-appointment of Mrs. Tania Deol as Managing Director and Chief Executive Officer for a five-year term from July 1, 2026, to July 1, 2031, subject to shareholder approval at the Annual General Meeting.
TCFC Finance Limited operates primarily in the investments segment and continues to strengthen its position in the NBFC sector through strategic corporate actions and improved operational performance.
Historical Stock Returns for TCFC Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.41% | +2.50% | +4.26% | -5.60% | -43.85% | +94.67% |
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