Indian Card Clothing Proposes Consolidation Of Shares
Indian Card Clothing has proposed to reduce the number of shareholders through ‘reverse split’ of its shares. The company proposes to raise the nominal value or face value of its share from Rs 10 to Rs 2,000 each and has called this a consolidation exercise.
The company has issued the notice on 14 August 2023 to the National Stock Exchange under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company presently has 59,41,120 shares of Rs 10 each. After consolidation, there will be 29,705 shares of Rs 2,000 each. Presently, there are 9,658 shareholders in the ‘public’ category holding 19,40,954 shares.
The company proposes to provide the option to exit to small shareholders at a ‘fair’ consideration. If the small shareholders do exit, the promoter holding will increase from the current 67.33% to more than 75% after which the promoters may go for delisting of the company’s shares.
