Moneyboxx Finance Limited has forfeited ₹28,23,86,634 crores from warrant holders who failed to exercise their conversion rights within the regulatory deadline. The company informed stock exchanges on March 13, 2026, that none of the 37,37,745 convertible warrants issued were converted into equity shares before the expiry date.

Warrant Allotment Details

The company had originally allotted the convertible warrants on September 13, 2024, to 14 allottees on a preferential basis. The warrants were issued at ₹302.20 per warrant, with warrant holders required to pay 25% of the issue price as an initial subscription amount at the time of allotment.

Allottee Distribution

The warrant allocation was distributed across promoters, promoter group, and non-promoter categories. Promoters Mayur Modi and Deepak Aggarwal received the largest individual allocations of 613,500 warrants each, while the remaining warrants were distributed among promoter group and non-promoter investors.

Regulatory Framework

Under the terms of allotment and SEBI ICDR Regulations 2018, warrant holders were entitled to exercise their conversion rights and subscribe to one equity share of ₹10 each against each warrant within 18 months from the allotment date. The conversion period commenced on September 13, 2024, and concluded on March 12, 2026.

Forfeiture Process

As none of the warrant holders exercised their conversion option within the stipulated timeframe, the 25% amount received on the convertible warrants has been forfeited in accordance with Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The forfeited amount of ₹28,23,86,634 crores will now be retained by the company.

Impact on Company

The non-conversion of warrants means that Moneyboxx Finance will not receive the remaining 75% of the warrant issue price, which would have been paid upon conversion. However, the company retains the initial 25% payment as forfeited amount, providing additional capital without diluting equity ownership through the issuance of new shares.

Moneyboxx Finance Limited has reported a significant fraud incident involving a former employee who misappropriated company funds worth approximately ₹1.13 crore. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighting the company's commitment to transparency and regulatory compliance.

Fraud Details and Employee Involvement

The fraud was perpetrated by Mr. Rahul Kumar, who served as Senior Finance Manager at the company. Over several months, he engaged in unauthorized transfers of company funds for personal gain, exploiting his access to KODO, an expense management software designed for managing branch-level spending, vendor payments, and reimbursements. The fraudulent activity involved transferring company funds to his personal accounts, constituting a serious breach of trust.

Company Response and Legal Action

Upon discovering the fraudulent activities, Moneyboxx Finance immediately conducted an internal review to assess the full scope of the incident. Following the investigation findings, the company took swift disciplinary action by terminating Mr. Rahul Kumar's employment. The organization has also initiated comprehensive legal proceedings against the former employee and is actively pursuing recovery of the misappropriated funds.

The company has filed a formal complaint with the police station having jurisdiction over the company location, ensuring that appropriate legal authorities are involved in the matter. This demonstrates the company's commitment to pursuing justice and recovering the stolen funds through proper legal channels.

Internal Controls and Governance Measures

In response to this incident, Moneyboxx Finance has emphasized its commitment to maintaining the highest standards of corporate governance. The company has taken proactive steps to strengthen its internal control mechanisms to prevent the recurrence of similar incidents in the future. These enhanced controls are designed to provide better oversight of financial transactions and access to critical systems like expense management software.

The disclosure was signed by Company Secretary Lalit Sharma, reflecting the company's adherence to regulatory requirements and transparent communication with stakeholders. The incident serves as a reminder of the importance of robust internal controls and continuous monitoring of financial processes in maintaining corporate integrity.