Welspun Syntex to reduce paid up capital

Welspun Syntex Ltd has announced that the Board of Directors of the Company at its meeting held on November 13, 2006 has decided the following:

1. Revaluation of fixed assets as on June 30, 2006 from Rs 165.02 crore to Rs 119.04 Crore.

2. Reduction of paid up equity share capital by Rs 70,93,50,820 from the existing Rs 94,58,01,090 to Rs 23,64,50,270 by cancellation of Rs 7.50 per share.

3. Consolidation of equity share capital of 9,45,80,109 partly paid up to the extent of Rs 2.50 each into 2,36,45,027 equity shares of Rs 10 each fully paid up.

4. The equity share capital of Rs 70,93,50,820 so reduced shall be adjusted partly against diminished value of fixed assets and partly by transfer to Capital Reserve.

The above reduction of share capital is subject to the approval of shareholders, Secured Creditors and High Court of Bombay.

Further the Company has clarified that, in point no. 3 equity share capital of 9,45,80,109 of Rs 2.50 each fully paid up (instead of partly paid up) shall be consolidated into 2,36,45,027 equity share of Rs 10/- each fully paid up.

This is subject to the approval of Shareholders, Secured creditors and High Court of Bombay.

Source : Equity Bulls

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