Subex Ltd fixes Oct 23, 2020 as record date for capital reduction

Subex Ltd has fixed Friday, October 23, 2020 as the record date to give effect to the Scheme of Reduction of Equity Share Capital of the Company from Rs. 562 Crores to Rs. 281 Crores, by reducing the Face Value of the equity shares from Rs. 10/- per share* to Rs. 5/- per share, pursuant to the Order of the Honorable National Company Law Tribunal, Bengaluru Bench, dated September 23, 2020.

The issued, subscribed, and paid-up capital of the Company is Rs 5,62,00,29,350 comprising of 56,20,02,935 equity shares of Rs 10 each and the securities premium is Rs. 2,67,04,28,364, based on the unaudited standalone financial statements for the period ended December 31, 2019. Further, these financial statements reflect accumulated losses (i.e., debit balance of profit and loss account) of Rs. 3,84,01,09,702 for the period ended December 31, 2019. Such accumulated losses had substantially wiped off the value represented by the share capital.

Considering the future prospects of growth and value addition to the Company and its Shareholders, it was proposed to re-align the relationship between its capital and assets in accordance with Section 52 and Section 66 of the Companies Act, 2013 read with the National Company Law Tribunal (Procedure for reduction of share capital of Company) Rules, 2016 and other applicable provisions of the Companies Act, 2013 (to the extent applicable), by writing-off the accumulated losses of Rs. 3,84,01,09,702 reflecting in the unaudited financial statements of the Company as on December 31, 2019 against the paid-up share capital and Securities Premium Account balance of the Company, to have a rational structure which is commensurate with its remaining business and assets. It was proposed to effect the reduction of share capital by reducing the face value of each fully paid- up equity share from Rs 10 to Rs 5. Further, it was also proposed that the Securities Premium Account of the Company be reduced from Rs. 2,67,04,28,364 to Rs 1,64,03,33,337.

The reduction of capital shall be on proportionate basis, there shall not be any change in percentage shareholding of any shareholder of the Company, and hence, the shareholding pattern shall remain the same pre and post reduction of the equity share capital.

Shares of SUBEX LTD. was last trading in BSE at Rs.12.45 as compared to the previous close of Rs. 12.97. The total number of shares traded during the day was 362284 in over 582 trades.

The stock hit an intraday high of Rs. 13.06 and intraday low of 12.25. The net turnover during the day was Rs. 4599550.

Source : Equity Bulls

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