Tess Agro proposes stated capital reduction to write off Rs. 408 m in losses

Wednesday, 15 October 2025 00:25 - - {{hitsCtrl.values.hits}}

Tess Agro PLC yesterday said that its Board of Directors has approved a proposal to reduce the company’s stated capital to strengthen its balance sheet by writing off over Rs. 408 million in losses, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM).

The company said the Board resolved to restructure its capital through a reduction of stated capital without altering the number of issued and fully paid shares.

According to the company’s audited financial statements as of 31 March, Tess Agro’s stated capital stands at Rs. 671 million, represented by 677 million voting shares and 66. 6 million non-voting shares. The Board has proposed to reduce the stated capital to Rs. 263 million.

The move will allow the company to write off accumulated losses amounting to Rs. 461. 6 million as of 31 March. Out of this, Rs. 408 million will be written off against stated capital, leaving a remaining accumulated loss of Rs. 53.6 million.

Tess Agro said the proposed capital reduction will improve its negative equity position and enhance its ability to pay dividends and raise future funding. The circular to shareholders and notice of the EGM will be issued in due course, while the meeting date will be notified to the market once confirmed.