Balkrishna Paper Mills Limited announced the outcome of its Board of Directors meeting held on Tuesday, 23rd December 2025. The Board approved a Scheme of Reduction of Share Capital between the Company and its Shareholders under Section 66 of the Companies Act, 2013. This scheme aims to adjust accumulated losses against paid-up share capital and present a true and fair view of the company's financial health. The accumulated losses as of 30th September 2025 stand at ₹278.39 crore. The reduction plan involves adjusting ₹52.28 crore of these losses against Securities Premium Reserve and the remaining against equity share capital by reducing the face value of equity shares from ₹10 to ₹1. The issued, subscribed, and paid-up preference share capital of ₹110 crore will be cancelled and extinguished, with consideration payable as and when funds become available, treated as an unsecured non-interest-bearing loan until then. The Board also approved the recommendation report from the Audit Committee and the Committee of Independent Directors, along with a Valuation Report and a Fairness Opinion Report from SEBI-registered entities. A draft Postal Ballot Notice is being prepared to seek shareholder approval for the scheme. The company stated that the proposed reduction would not adversely affect creditors or employees and is in the best interests of all stakeholders. The scheme is subject to various statutory and regulatory approvals, including from shareholders and the National Company Law Tribunal.