Description

NCLT Mumbai approves selective capital reduction scheme resulting in cancellation of 14,51,702 equity shares of Rs. 10 each of Keynote Financial Services Ltd (Scrip code: 512597).

Summary

Keynote Financial Services Ltd (Scrip code: 512597) has extinguished and cancelled 14,51,702 equity shares of Rs. 10/- each pursuant to a Scheme of Selective Capital Reduction approved by the National Company Law Tribunal (NCLT) Mumbai Bench vide Order dated January 09, 2025. The scheme was undertaken under Section 66 read with Section 52 and other applicable sections of the Companies Act, 2013 and NCLT (Procedure for Reduction of Share Capital of Company) Rules, 2016.

Key Points

  • Total shares cancelled: 14,51,702 equity shares of Rs. 10/- each
  • Company: Keynote Financial Services Ltd
  • Scrip code: 512597
  • Approval authority: NCLT Mumbai Bench
  • Legal framework: Sections 66, 52 and other applicable provisions of Companies Act, 2013
  • Scheme type: Selective Capital Reduction between the company and its shareholders and creditors

Regulatory Changes

The capital reduction scheme has been approved under the Companies Act, 2013 framework, specifically:

  • Section 66 (Reduction of share capital)
  • Section 52 (Related provisions)
  • NCLT (Procedure for Reduction of Share Capital of Company) Rules, 2016

Compliance Requirements

  • The company has complied with NCLT order dated January 09, 2025
  • Share cancellation involves specific distinctive number ranges as detailed in the circular
  • The reduction affects the issued, subscribed and paid-up share capital of the company

Important Dates

  • January 09, 2025: NCLT Mumbai Bench Order Date approving the scheme
  • January 19, 2026: Circular publication date

Impact Assessment

Market Impact: High - The cancellation of over 14.5 lakh shares represents a significant reduction in the company’s equity capital base, which will affect the total number of outstanding shares and potentially impact share price, liquidity, and shareholding percentages.

Shareholder Impact: Selective capital reduction means specific shareholders have had their shares extinguished, likely with corresponding compensation or return of capital as per the approved scheme.

Share Structure Impact: The distinctive numbers ranging from 1121021 to 9658100 across multiple blocks have been cancelled, fundamentally altering the company’s shareholding structure and register of members.

Impact Justification

Significant capital structure change involving cancellation of over 14 lakh shares following NCLT-approved selective capital reduction scheme