1. Rights issue completed - The company raised ₹37.9 cr through a rights issue in FY25, issuing 8.43 cr equity shares. The infusion strengthens the capital base, lifting CRAR from 7.61% to 10.56% and directly enabling the loan-book expansion already underway.
2. 1:1 bonus issue allotted - A 1:1 bonus issue of 29.63 cr shares was allotted on 5 January 2026, doubling paid-up equity to ₹59.26 cr. The enlarged, more liquid equity base supports the proposed institutional fundraising and the Hong Kong strategic investment on easier terms.
3. Proposed fresh fundraising - A board meeting on 8 June 2026 will consider raising funds via rights, preferential issue, private placement, or QIP. Fresh capital, layered onto the already-strengthened balance sheet, would fund the next leg of loan-book growth without straining the 8.97x D/E ratio further.
4. Hong Kong strategic investment - Excellence Creative Limited (Hong Kong) has expressed intent to acquire up to 25% equity at ₹22 per share, and the board has authorised due diligence and evaluation of a QIP or open-market route. A strategic foreign partner can open access to lower-cost offshore funding and institutional credibility for a small NBFC.
5. Loan-book expansion - Loans and advances grew from ₹323.9 cr to ₹346.4 cr during FY25, driving interest income to ₹25.0 cr from ₹21.7 cr and flipping the bottom line from a ₹0.4 cr loss to a ₹2.9 cr profit. The turn to profitability on a growing book demonstrates operating leverage as the base of earning assets scales.
6. Funding-cost reduction - Diversified funding sources allowed the company to reduce average borrowing costs during FY25. On a ₹213 cr debt book, even a modest cost reduction flows directly to net interest margin and profit.
7. New product initiatives deploying - Management states that FY25 was a year of new initiatives and that FY26 will see many of these taking shape and being deployed. New secured or fee-based products layered onto the existing loan book can lift total income without a proportionate rise in credit risk.