Announcement of SEMB

cOrE wrote:Came across in one of the research reports that mentioned about SEMB of which I too own a considerable amount of shares..

"SMB Leasing (SEMB) announced that the company will be reducing its stated capital from Rs. 1,147Mn to Rs. 518.3 Mn(Subject to Approval) by writing off the brought forward losses of the company"

I need to know as to what would be the consequences of this announcement and what would happen to the price of the share once the stated capital had been reduced. I had bought SEMB.W16 at 0.6 and is it advisable to hold on to this and for how long.. ?

cOrE wrote:Came across in one of the research reports that mentioned about SEMB of which I too own a considerable amount of shares..

"SMB Leasing (SEMB) announced that the company will be reducing its stated capital from Rs. 1,147Mn to Rs. 518.3 Mn(Subject to Approval) by writing off the brought forward losses of the company"

I need to know as to what would be the consequences of this announcement and what would happen to the price of the share once the stated capital had been reduced. I had bought SEMB.W16 at 0.6 and is it advisable to hold on to this and for how long.. ?

stumpy wrote:StocksWatch:
I think market not yet responded to this because of the bull run with CSF!

Will see! I guess it will not make a move, unless some good reason (at least a paper article)

StocksWatch wrote:

stumpy wrote:StocksWatch:
I think market not yet responded to this because of the bull run with CSF!

Will see! I guess it will not make a move, unless some good reason (at least a paper article)

Honestly I don't expect the market to respond to this. But you never know, this is CSE.

What value this is going to add to the company in the long run? Yes it may be a good strategic decision to write-off losses against the stated capital and this will enable the company to declare dividends in the future as the company started recording profits. Any other tangible benefit?