Visagar Polytex proposes capital reduction scheme at 43rd AGM

Visagar Polytex has scheduled its 43rd Annual General Meeting for September 30, 2026, to seek shareholder approval for a composite scheme of arrangement. The proposal aims to address accumulated losses through a significant capital reduction and consolidation, alongside a fresh equity raise. The company reported a net loss of ₹153.71 lakh for FY26, down from ₹166.40 lakh in the previous year. Revenue from operations stood at ₹11.51 lakh, a recovery from nil in FY25. Total expenses remained high at ₹174.14 lakh, driven largely by finance costs of ₹27.08 lakh and depreciation of ₹49.91 lakh. What the Numbers Show Despite the reduction in absolute loss, the company's financial position remains strained by its debt burden. Non-current borrowings total ₹629.14 lakh, while total equity stands at a negative ₹40.72 lakh after accounting for share forfeiture reserves. The deferred tax assets increased to ₹32.43 lakh, reflecting ongoing carry-forward losses that may provide future tax benefits if operations normalize. Composite Scheme Details The proposed scheme involves reducing the face value of each equity share from ₹1 to ₹0.01, effectively wiping out ₹30.19 crore against accumulated losses. This will be followed by a 100:1 consolidation of shares. Concurrently, the company plans to issue up to 3 crore equity shares and 3 crore warrants on a preferential basis at ₹1 each. Proceeds from the issue, potentially reaching ₹6 crore upon full warrant exercise, will be utilized for repaying borrowings and funding working capital requirements for its Pali textile business. Promoters, including Sagar Tilokchand Kothari and Trisha Studios Limited, are proposed to subscribe to 72 lakh equity shares and an equal number of warrants. Governance and Compliance Shareholders will also vote on the re-appointment of Executive Director Vikramjit Singh Gill and the appointment of Ms. Riddhi Kishor Trivedi as statutory auditor for five years. The secretarial audit report highlighted several regulatory non-compliances, including fines imposed by stock exchanges for delayed board meeting intimations and failure to maintain board composition requirements regarding woman directors.