What’s new

• Board approved 75% reduction in paid-up equity capital, canceling 59.56 lakh shares.
• ₹12.42 cr (₹5.95 cr equity + ₹6.47 cr premium) used to offset accumulated losses.
• Scheme turns net worth positive; pro-rata reduction keeps shareholder percentages unchanged.

Why it matters

For a nano-cap with a market cap of just ₹3 cr, this restructuring is extraordinary. It removes a critical barrier to raising equity or debt and signals management's intent to restart the business on a clean slate.

What we’re watching

• Shareholder and NCLT approval timeline.
• Management's next steps to raise fresh capital.
• Any impact on operations or business trajectory post-restructuring.

The full read

Innocorp, a nano-cap with a market cap of just ₹3 crore, has approved a capital reduction that is outsized relative to its size. The board will cut paid-up equity by 75%, cancel 59.56 lakh shares and wipe out both ₹5.95 crore of equity and the entire ₹6.47 crore securities premium account, a combined ₹12.42 crore, to erase accumulated losses. The goal: turn negative net worth positive and clear the path for future equity or debt raises. Shareholders see no dilution because the reduction is pro-rata, and the ₹10 face value stays. For a company this tiny, this is a balance-sheet reset of rare scale. What changes from here is whether management can now raise fresh capital and restart growth.

Primary source: BSE · NSE