Iykot Hitech Toolroom Forfeits 99 Lakh Shares, Halving Equity Capital

Iykot Hitech Toolroom Limited has forfeited 99,01,931 partly paid-up equity shares. This action effectively halves its total equity share capital, reducing the number of paid-up shares from 2.02 crore to 1.03 crore.

The Announcement

Iykot Hitech Toolroom Limited announced the forfeiture of 99,01,931 partly paid-up equity shares. This action was taken because shareholders failed to pay the First and Final Call money, even after multiple reminders from the company. The board of directors approved the forfeiture on January 09, 2026, and BSE provided its consent on May 11, 2026.

Why It Matters

The forfeiture directly reduces the company's paid-up share capital and the total number of outstanding equity shares. This means the expected capital from these shares will not be received, changing the company's financial structure and potentially affecting per-share financial metrics.

Background

The forfeited shares were likely issued previously as partly paid-up equity, possibly as part of a capital-raising effort. These shares required shareholders to pay subsequent installments, known as calls, to become fully paid-up.

Key Changes

• Iykot Hitech Toolroom's total number of equity shares in issue has decreased significantly.
• The company's paid-up equity share capital has been revised downwards.
• The company is initiating corporate actions to cancel these forfeited shares with depositories, including NSDL and CDSL.

Risks to Consider

The non-payment of call money by a significant number of shareholders could signal issues with investor confidence or the financial capacity of those investors. The company will not receive the expected capital infusion from this group of shares.

Industry Context

Iykot Hitech Toolroom operates in the precision engineering sector, manufacturing tools and dies. Key players in this sector, like Sona BLW Precision Forgings and Bharat Forge, are major suppliers to the automotive industry and require high precision and strong financial operations.

Key Figures

• Equity shares before forfeiture: 2,02,80,000 shares.
• Equity shares after forfeiture: 1,03,78,069 fully paid-up shares.
• Face value per forfeited share: ₹5.

Looking Ahead

• Confirmation of the completion of share cancellation formalities with NSDL and CDSL.
• Any future announcements regarding capital restructuring or new fund-raising plans.
• Company communications explaining the reasons for the widespread default.