Reduction of share Capital-section 100

Section 78. Application of premiums received on issue of securities

 (1) Where a company issues securities at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those securities shall be transferred to an account, to be called "the securities premium account";  and the provisions of this Act relating to the reduction   of  the securities capital    of a company shall, except as provided in this section, apply1[securities] premium account were paid-up securities capital of the company

    So you can utilise the Premium A/c for reduction of Capital u/s 100.