Scheme of Arrangement

Visagar Polytex Limited has announced a board meeting where the directors have approved a Scheme of Arrangement aimed at writing off accumulated losses of approximately ₹29.27 crore by reducing the share capital from ₹29.27 crore to ₹0.88 crore.

This reduction is intended to improve the financial representation of the company.

To maintain the share face value at ₹1, a consolidation will follow post-reduction.

Furthermore, the board plans a preferential issue of 3 crore fully paid-up equity shares and 25 crore share warrants, pending necessary approvals.

These moves may enhance the company's financial stability, potentially fostering a positive outlook among investors, despite the inherent risks associated with restructuring.