Supreme Petrochem Ltd

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Equity share capital reduction by way of FV reduction in Supreme Petrochem and adjusted face value is credited as one time payment to the shareholders (Rs. 6 per equity share). I am experiencing this for the first time in any of my holdings and would like to know from boarders, if it is positive or negative for minority shareholders.

Ref: CF NCS/12/AGM_32/2021-2022 March 29, 2022 BSE Limited Phiroze Jeejeebhoy Towers 1 st Floor, Dalal Street Mumbai - 400 001 Script Code- 500405 National Stock Exchange of India Ltd Exchange Plaza, Bandra Kurla Complex Bandra East Mumbai _ 400 051 Scri~Code-SUPPETRO Dear Sir, Sub: Intimation of record date in relation to Scheme of Reduction of Equity Share Capital of Company under the provisions of section 66 of the Companies Act, 2013. Ref: Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 This is to inform you that the Record Date has been fixed at the close of business hours on Friday, 8th April, 2022 for the purpose of giving effect to the Scheme of Reduction of Equity Share Capital of the Company from Rs. 94,02,06,7101- (Rupees Ninety Four Crores Two Lakhs Six Thousand Seven Hundred Ten Only) to Rs. 37,60,82,684/- (Rupees Thirty Seven Crores Sixty Lakhs Eighty Two Thousand Six Hundred Eighty Four Only), by reducing the Face Value of the equity shares of the Company from existing Rs. 10/- (Ten) per share to Rs. 4/- (Four) per share, pursuant to the Order of the Hon'ble National Company Law Tribunal, Mumbai Bench, Mumbai, the certified copy whereof has been issued to the Company by NCLT on 29.03.2022. A synopsis of the Scheme of Reduction of Share Capital of the Company is enclosed herewith vide 'Annexure A' and the copy of said order of NCL T is also attached herewith vide 'Annexure B'. For complete details on the Scheme of Capital Reduction, please refer the documents available on the website of the Company under hUps:llwwW.supremepetrochem.com/reduction_share-capital.htm Kindly take the above on record and acknowledge receipt. Thanking you, Yours faithfully, For SUPREME PETROCHEM LTD D N MISHRA COMPANY SECRETARY

I did some self study on my own query and came up with this article which explains the process/benefits in detail. Sharing this for the benefit of boarders if they have similar questions.

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Supreme Petrochemicals (SPL) has shown remarkable performance in the last 2 years. Just analysed the probable reasons why… My summary thoughts and analysis… Feedback welcome. Please see attachment for details
Supreme Petro_Valuepickr.docx (108.3 KB)

Supreme Petrochem Ltd (SPL) is the India’s largest producer and exporter of polystyrene polymer (PS), compounds of styrenics etc.

SPL has seen superlative earnings performance: Nearly 4 to 4.5x fold increase in net profits in FY21 – driven by favourable industry structure (closure of LG Polymers in May 2020), shortage of PS domestically, and strong international price delta (due to supply disruptions in global styrene and therefore polystyrene). Price delta is the spread between PS and raw material styrene etc.

Future earnings performance will be driven by volumes; global price delta could soften as supply disruptions in US and Europe ease. Further China, a key player with 25% of global capacity is also adding PS capacities

Environmental risks and risk of government ban on PS for single use packaging remains.

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Accumulation of Supreme Petrochem Ltd shares by promoter group