Srestha Finvest Limited is an Indian **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under Section **45-IA** of the RBI Act, 1934. Classified as an **Investment and Credit Company (NBFC-ICC)**, the firm operates within the **Base Layer (NBFC-BL)** under the RBI’s Scale-Based Regulation framework. Historically a standalone entity, the company has recently transitioned into a group structure to facilitate aggressive expansion into green technology and industrial lending. --- ### **Core Business Segments & Revenue Streams** The company’s operations are bifurcated into two primary reporting segments designed to capture both interest income and capital appreciation: * **Financing Activities:** Provision of loans and credit facilities. The company focuses on regional industrial clusters, offering customized financial products to bridge the credit gap created by tightening bank liquidity. * **Investment Activities:** Active dealing in securities, strategic equity investments, and financial consultancy. This segment focuses on long-term value creation through stakes in manufacturing and engineering firms. --- ### **Strategic Pivot: Renewable Energy & Sustainable Technology** A defining element of Srestha Finvest’s current growth trajectory is its shift toward **Sustainable Development** and **Green-Tech** financing. * **Felix Industries Partnership:** In **June 2024**, the company entered into a facility agreement to fund renewable energy and clean water projects. This includes a commitment of **Rs. 5 Crore** for plant installations related to **Aarti Industries Ltd** projects. * **Targeted Deployment:** The company plans to deploy **Rs. 2.5 Crore** over the next **1-2 years** specifically targeting new technology and environmental sectors. * **Subsidiary Expansion:** In **July 2024**, the company acquired a majority stake in a new subsidiary to spearhead its green initiatives. **Subsidiary Performance & Asset Overview (FY25)** | Subsidiary Name | Ownership | Acquisition Date | Net Profit | Total Assets | | :--- | :--- | :--- | :--- | :--- | | **Srestha Greentech Pvt Ltd** | **75%** | **30/07/2024** | **Rs. 11.87 Lakhs** | **Rs. 9.00 Crore** | --- ### **Aggressive Capital Restructuring & Fundraising** To support its expanded borrowing limits—which shareholders increased to **Rs. 500 Crore** in **October 2024**—the company has undergone significant financial engineering: * **Stock Split (September 2024):** Sub-divided every **1** equity share (Face Value **Rs. 2/-**) into **2** equity shares (Face Value **Rs. 1/-**) to enhance market liquidity. * **Authorized Capital Expansion:** Increased from **Rs. 167 Crore** to **Rs. 367 Crore** in **September 2024**. * **Rights Issue (July 2024):** Allotted **24,00,00,000** equity shares (pre-split) at **Rs. 2/-** each, raising **Rs. 48.00 Crore**. * **Convertible Warrants:** In **February 2025**, the company allotted **85,30,00,000** warrants at **Rs. 1.05** (post-split). As of **April 2026**, **11,75,00,000** of these warrants were converted into equity shares by the Promoter. * **Qualified Institutions Placement (QIP):** Approved an enabling resolution in **October 2024** to raise up to **Rs. 100 Crore**. **Equity Capital Evolution** | Date | Action | Shares Allotted | Face Value | Total Paid-up Capital | | :--- | :--- | :--- | :--- | :--- | | **FY 2022-23** | Preferential Allotment | **24,75,00,000** | **Rs. 2** | **Rs. 66.00 Crore** | | **FY 2023-24** | Preferential Allotment | **25,00,00,000** | **Rs. 2** | **Rs. 116.00 Crore** | | **July 2024** | Rights Issue (12:29) | **24,00,00,000** | **Rs. 2** | **Rs. 164.00 Crore** | --- ### **Strategic Investment Portfolio** Beyond its green-tech subsidiary, Srestha Finvest maintains strategic stakes in the manufacturing and FMCG sectors: * **Rhythms Industries Pvt Ltd (March 2025):** Acquired **1,49,999** equity shares (FMCG Manufacturing). * **Kunj Forgings Pvt Ltd (April 2025):** Acquired **25,576** equity shares (Forging Industry). --- ### **Risk Profile & Regulatory Contingencies** Investors should note several critical legal and financial headwinds currently facing the company: **1. Audit Qualifications & Debt Disputes** The company’s financial statements have received **Qualified Opinions** due to the non-provision of interest on borrowings from **Arcadia Shipping Ltd**. The lender has issued a formal debt recall, which the company is contesting legally. **Impact of Unprovided Interest on Financials:** * **FY 2024-25 (Full Year):** **Rs. 68.25 Lakhs** (Unprovided interest). * **Sept 30, 2025 (Half Year):** **Rs. 34.13 Lakhs** (Unprovided interest). * *Note: Non-provision results in an artificial decrease in Finance Costs and a corresponding impact on Net Profit/Loss.* **2. Regulatory Investigations & Penalties** * **ED Investigation (April 2025):** The **Directorate of Enforcement** conducted searches at the company’s premises and a Director's residence regarding third-party transactions. The matter is ongoing. * **RBI Penalty (May 2023):** A penalty of **Rs. 2,00,000** was imposed for failing to obtain prior approval for management changes. **3. Operational Risks** * **Warrant Forfeiture:** Warrants issued in **July 2023** face a risk of forfeiture if not converted within **18 months**. * **Internal Systems:** As of recent filings, the company does not maintain a formal internal audit system, though it complies with **SEBI (LODR) Regulation 33**. --- ### **Governance & Compliance Framework** * **Auditors:** **M/s. SPAN & CO., Company Secretaries LLP** has been appointed as Secretarial Auditors for a five-year term (**FY 2025-26 to FY 2029-30**). * **Related Party Transactions:** Frameworks are in place for transactions up to **Rs. 10 Crores** through **FY 2026-27** with entities including **Srestha Greentech** and individual promoters (**Sneha and Rekha Bhandari**). * **Asset Assessment:** Impairment of assets is conducted per **IND AS**, with investment valuations performed on a year-end basis.