HM to halve its paid-up share capital

Car maker Hindustan Motors today said its board had proposed to entirely write off the securities’ premium account of the company, which amounted to Rs 3,17,27,232 as on March 31.

In an announcement to the Bombay Stock Exchange, the CK Birla Group company also said there would be a reduction in the paid-up share capital, as it would halve the paid-up value of each equity share from Rs 10 to Rs 5. Hence, the statement added, the paid-up share capital of the company would reduce from Rs 161,17,19,930 to Rs 80,58,59,965, divided into 16,11,71,993 equity shares of Rs 5 each.

HM’s managing director, Manoj Jha, when asked, said he was unable to comment on the issue, while the company’s Chief Financial Officer, Yogesh Goenka, remained unavailable. “It is a BIFR (Board of Industrial and Financial Reconstruction, to which the company had earlier gone for help) related development,” a spokesperson said, without any further detail.