Visagar Polytex Limited — Updates, 06-02-2025: 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.