Key Quantitative Figures

  • Issue Size: Up to 6,39,00,000 equity shares of face value ₹10 each
  • Issue Price: ₹10 per share (at par)
  • Total Amount: ₹63.90 crore (assuming full subscription)
  • Rights Entitlement Ratio: 9 rights shares for every 2 existing shares held
  • Record Date: June 20, 2026
  • Current Paid-up Capital: ₹14.20 crore (1.42 crore shares)
  • Post-issue Capital: ₹78.10 crore (7.81 crore shares, assuming full subscription)

Dates of Action

  • Record Date: Saturday, June 20, 2026
  • Issue Opening Date: Monday, June 29, 2026
  • Last Date for On-market Renunciation: Wednesday, July 1, 2026
  • Issue Closing Date: Monday, July 6, 2026
  • Finalization of Basis of Allotment: Tuesday, July 7, 2026 (on or about)
  • Date of Allotment: Tuesday, July 7, 2026 (on or about)
  • Date of Credit of Shares: Wednesday, July 8, 2026 (on or about)
  • Date of Listing: Wednesday, July 8, 2026 (on or about)

Parties Involved

  • Registrar to Issue: MCS Share Transfer Agent Limited
  • Bankers to Issue: Kotak Mahindra Bank Limited
  • Monitoring Agency: Brickwork Ratings India Private Limited
  • Designated Stock Exchange: BSE Limited
  • Statutory Auditors: Sheladiya & Jyani, Chartered Accountants

Purpose/Rationale

The net proceeds of ₹63.40 crore (after ₹0.50 crore issue expenses) are proposed to be utilized as follows:

1. Augmenting capital base for NBFC lending activities: ₹61.30 crore (96.6% of net proceeds)

2. General corporate purposes: ₹2.60 crore (4.1% of net proceeds)

The capital augmentation will support the company's NBFC operations and ensure compliance with RBI's capital adequacy requirements (current CRAR: 59.98% as of March 31, 2026).

Financial Impact

  • Dilution Impact: The issue will increase share capital from 1.42 crore to 7.81 crore shares (assuming full subscription)
  • EPS Impact: Basic EPS was ₹0.88 for FY2026 (post-issue EPS would be lower due to dilution)
  • NAV Impact: NAV per share was ₹24.38 as of March 31, 2026 (post-issue NAV would be recalculated)

Capital Structure Impact

  • Pre-issue Share Capital: 1,42,00,000 equity shares of ₹10 each
  • Rights Issue: 6,39,00,000 equity shares of ₹10 each
  • Post-issue Share Capital: 7,81,00,000 equity shares of ₹10 each (assuming full subscription)
  • Promoter Holding: Promoters have undertaken to subscribe to their full entitlement and may apply for unsubscribed portion

Cash Flow Implications

  • Inflow: ₹63.90 crore from the rights issue (gross proceeds)
  • Outflow: ₹0.50 crore for issue expenses
  • Net Inflow: ₹63.40 crore

Important Conditions

  • Applications only through ASBA facility
  • Shares allotted only in dematerialized form
  • No withdrawal of applications permitted after issue closing date
  • Fractional entitlements ignored (shareholders with fractional entitlements get preference for one additional share if they apply for additional shares)
  • The issue is not underwritten

Risk Factors Disclosed

The document includes 56 risk factors covering internal risks (delays in fund raising, competition, operational risks) and external risks (regulatory changes, economic conditions, market volatility).

Compliance Status

Company confirms it is not categorized as wilful defaulter or fraudulent borrower. The company has paid penalties for delayed submissions under SEBI LODR Regulations in the past.