Softlogic Finance seeks shareholder approval for Rs. 7.6 b stated capital reduction

Thursday, 5 February 2026 04:49 - - {{hitsCtrl.values.hits}}

Stated capital to be reduced from Rs. 9.93 b to Rs. 2.33 b to offset accumulated losses

Softlogic Finance PLC is seeking shareholder approval for a proposed a Rs. 7.6 billion reduction of its stated capital as part of a balance sheet restructuring exercise.

The company’s stated capital currently stands at Rs. 9.93 billion. Under the proposal, this will be reduced to Rs. 2.33 billion by writing off accumulated retained losses amounting to Rs. 7.6 billion against stated capital. Following the reduction, the number of issued shares will remain unchanged.

In a note to shareholders, the company said the primary objective of the proposed reduction is to clean up the balance sheet by eliminating carried-forward losses and presenting a clearer financial position. It stressed that the exercise will not involve any cash distribution to shareholders, will not alter individual shareholdings, and will not reduce the company’s net asset value.

The Softlogic Finance Board believes the restructuring will provide a more stable foundation for future operations, including the ability to declare dividends and raise funding for business expansion.

The proposed reduction requires approval by way of a special resolution at a forthcoming EGM. The company said management has confirmed that there are no agreements with creditors that restrict proceeding with the capital reduction.

The share price of Softlogic Finance closed Tuesday down 20 cents at Rs. 5.50.

As of end-December 2025, the company reported net assets at Rs. 3.06 a share. Softlogic Capital was the biggest shareholder with a 91.49% stake followed by Softlogic Life Insurance (1.63%) and Mercantile Fortunes Ltd. (1.04%).

The public shareholding was 6.12% involving over 58.58 million shares among 2,910 shareholders.