Samsrita Labs to cancel half its shares, wipe out ₹11.37 cr in losses
The capital reduction cuts paid-up capital from ₹22.75 cr to ₹11.37 cr, setting off all accumulated losses and share premium. The move, equal to 42% of market cap, cleans the balance sheet ahead of a pet healthcare pivot.
— 1 earlier story on Samsrita Labs Ltd. →What's new
- Board approves 1:2 share cancellation, cutting paid-up capital in half.
- ₹11.37 cr in accumulated losses and entire share premium extinguished.
- New non-executive director with 7.1% stake and fundraising expertise appointed.
Why this matters
For a ₹28 cr nano-cap with a negative net worth, this balance sheet reset eliminates the biggest drag on equity. If approved, it leaves Samsrita with a positive net worth and a clean slate for the pet healthcare pivot.
What we're watching
- NCLT and shareholder approval timelines for the scheme.
- Whether a follow-on fundraise or business deal materialises post-restructuring.
- Execution of the pet animal healthcare business added to the memorandum.
The full read
Samsrita Labs is cancelling half of its equity shares (1,13,74,855 shares of ₹10 each) to write off ₹11.37 crore in accumulated losses and the entire share premium balance. The pro-rata cancellation reduces paid-up capital from ₹22.75 crore to ₹11.37 crore but leaves ownership percentages untouched and pays no cash. For a company with a market cap of just ₹28 crore and a negative net worth, this is a balance sheet reset that could transform its financial health. The board also appointed a funding specialist with a 7.1% stake as a director and amended the memorandum to formally include pet animal healthcare, confirming the strategic pivot announced earlier. None of this is final yet: shareholders and the Hyderabad NCLT must approve the scheme. If they do, Samsrita will emerge with a clean balance sheet, a positive net worth, and a clearer story for capital raising.
Questions answered
- How does the pro-rata share cancellation work for existing shareholders?
- Every two shares held will be consolidated into one. No cash consideration is paid, and percentage ownership remains unchanged.
- Why is this capital reduction being done?
- To wipe out ₹11.37 crore of accumulated losses and the entire share premium account, presenting a true and fair financial position and leaving a positive net worth.
- What happens to the cancelled shares' face value?
- The shares of ₹10 face value each are extinguished. The paid-up capital falls from ₹22.75 crore to ₹11.37 crore.
- What approvals are still needed?
- The scheme requires approval from shareholders and the Hyderabad bench of the National Company Law Tribunal.
- Who is the new director appointed?
- Ravi Kanth Naga Pattabhi Chopperla, a funding specialist who holds a 7.1% stake in the company, has been appointed as an additional non-executive professional director.
- How does the pet healthcare pivot tie into this?
- The board amended the main objects clause to formally include pet animal healthcare and wellness, aligning the memorandum with the previously announced strategic shift. The capital reduction cleans the balance sheet for this new business.
Samsrita Labs Ltd.
Latest quarter · Mar 2026
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All notes on SAMSRITA →- 4 Jul 2026 · 4:23 PM IST Samsrita Labs to cancel half its shares, wipe out ₹11.37 cr in losses
- 6d ago Samsrita Labs board to mull capital rejig; share cancellation on table?