Indian Card Clothing has proposed a “reverse split” of its shares, which would decrease the number of shareholders. The firm has described this as a consolidation process and plans to increase the nominal value, or face value, of each share from Rs. 10 to Rs. 2,000.
To comply with the SEBI (Listing Obligations and Disclosure Requirements) Regulations of 2015, the company sent the notice to the National Stock Exchange on August 14, 2023.
At the moment, the corporation has 59,41,120 shares, each worth Rs 10. There would be 29,705 shares of Rs 2,000 apiece upon consolidation. In the ‘public’ category, there are now 9,658 shareholders who hold 19,40,954 shares.
Small shareholders would have the option to leave the company for a “fair” price, according to the corporation’s proposal. The promoter stake will rise from the current 67.33% to more than 75% if the small owners do leave, at which point they may seek to have the company’s shares delisted.
