Manba Finance has announced plans to issue fully convertible warrants and equity shares, with the total value of the securities issue capped at ₹99.99 crore. The board of directors approved this preferential issue on a private placement basis during its meeting held on September 22, 2026.

The proposal involves a combination of fully convertible warrants and direct equity shares, offering flexibility to potential investors. The aggregate consideration for the proposed preferential issue shall not exceed ₹100 crore. The proceeds shall be utilised to meet the funding requirements of the company's lending and financing activities. The preferential issue will not result in any change in control or management of the company.

Details of the Preferential Issue

The board approved the issuance of up to 5,000,013 fully paid-up equity shares of face value ₹10 each to persons belonging to the Non-Promoter/Public category. These shares will be issued at a price of ₹135 per share, including a premium of ₹125, aggregating to ₹67.50 crore.

Additionally, the board approved the issuance of up to 24,07,223 fully convertible warrants to persons belonging to the Promoter/Promoter Group category. Each warrant carries a right to subscribe to one fully paid-up equity share within 18 months from the date of allotment. The issue price for warrants is also ₹135, aggregating to ₹32.49 crore.

Capital Structure Changes

To facilitate the issuance, the board approved an increase in the authorised share capital of the company from ₹55 crore to ₹65 crore. This increase involves the creation of 1 crore additional equity shares of face value ₹10 each. The consequential alteration of the capital clause in the Memorandum of Association is subject to approval by members at the ensuing Extraordinary General Meeting scheduled for October 19, 2026.

Leadership Continuity and Governance Updates

In addition to the capital raise, the board approved several reappointments to ensure leadership stability as the company undertakes new financing activities.

• Manish Kiritkumar Shah was reappointed as Managing Director for a further term of three years commencing April 1, 2027, with a revision in remuneration.
• Monil Manish Shah and Nikita Manish Shah were reappointed as Whole Time Directors for three years starting January 15, 2027.
• Jay Mota was reappointed as Whole Time Director and Chief Financial Officer for three years starting January 15, 2027.
• Neelam Tater was recommended for reappointment as a Non-Executive Independent Director for a second term of five years starting October 25, 2026.

The move signals the company's intent to strengthen its balance sheet while maintaining continuity in its executive management team. The preferential issue is subject to approval of the members by special resolution and receipt of in-principle approvals from BSE Limited and the National Stock Exchange of India Limited.

Manba Finance has scheduled a meeting on September 22 to discuss a new issue of equity shares and warrants.

Meeting details

The company has announced its intent to take up the matter of issuing new equity shares and warrants at the upcoming meeting. The agenda covers both equity shares and warrants as part of the proposed new issue.