Purple Finance Limited has approved the acquisition of Saksham Gram Credit Private Limited through a share swap arrangement. The transaction involves the allotment of 99,99,952 equity shares to existing shareholders of Saksham, effectively making the entity a wholly owned subsidiary.

The Board of Directors approved the issuance at its meeting held on September 23, 2026. The new shares carry a face value of ₹10 each and are issued at a price of ₹72 per share, including a premium of ₹62. This non-cash consideration aligns with SEBI ICDR Regulations for preferential allotments.

Capital Structure Impact

Consequent to this allotment, the paid-up equity share capital of Purple Finance increases significantly. The newly issued shares will rank pari-passu with existing equity shares in all respects.

Transaction Details and Regulatory Compliance

The acquisition targets 1,81,33,588 shares of Saksham Gram Credit Private Limited. These shares are being transferred to Purple Finance in exchange for the newly allotted equity shares. The allotment is directed towards 92 investors, all categorized as Non-Promoters.

Key aspects of the deal include:

• Issue Price: ₹72 per share (Face value ₹10 + Premium ₹62).
• Total Consideration: Non-cash, via share swap.
• Regulatory Framework: Compliant with Regulation 30 of SEBI LODR Regulations and Chapter V of SEBI ICDR Regulations.
• Listing: Application for listing and trading approval will be made in due course.

Additional Asset Acquisition

In addition to the subsidiary acquisition, the Board approved the purchase of a portfolio of Non-Performing Assets (NPAs). The consideration for this NPA portfolio does not exceed ₹15.50 crore. This transaction adheres to the Reserve Bank of India’s Master Direction on Transfer and Distribution of Credit Risk for Non-Banking Financial Companies, as amended.

What the Numbers Show

The share swap results in a dilution of approximately 14.9% in the total number of outstanding shares, rising from 6.71 crore to 7.71 crore. However, the paid-up capital increases by roughly 14.9%, from ₹67.14 crore to ₹77.14 crore. The valuation implies an implied enterprise value for Saksham Gram Credit based on the ₹72 issue price multiplied by the 99.99 lakh shares issued, totaling approximately ₹72 crore in book value terms for the acquired stake, excluding the separate ₹15.50 crore NPA portfolio acquisition.

Purple Finance Limited's Finance Committee approved the issuance of up to ₹15 crore in Non-Convertible Debentures and the sale of loan portfolios aggregating up to ₹32 crore during its meeting on September 22, 2026.

The board authorised the private placement of up to 15,000 Senior, Secured, Rated, Listed, Redeemable, Transferable, INR Denominated NCDs with a face value of ₹10,000 each. These instruments carry an interest rate of 11.90% per annum, payable monthly, with a tenure of 30 months and 8 days from the deemed date of allotment. The principal amount will be repaid in five installments along with a final payment on maturity.

In addition to debt fundraising, the committee approved the sale of a part of the company's loan portfolio aggregating up to ₹20 crore via the Direct Assignment route. It also revised the amount for another portfolio sale previously approved on September 10, 2026, increasing it from ₹8.74 crore to ₹12 crore. Both transactions are conducted under the Reserve Bank of India's Master Directions on transfer and distribution of credit risk.

Fundraising Details

The NCDs are secured by a first-ranking pari passu charge over identified book debts and loan receivables. In the event of payment default, additional interest at 2% per annum over the interest rate will be payable on outstanding principal amounts until the default is cured.

Portfolio Sales and Servicing

Under the Direct Assignment transactions, the participation ratio between the assignee and Purple Finance Limited is set at 90:10. The company stated that these transactions are expected to be income accretive and reaffirm its ability to originate quality loan portfolios. Purple Finance Limited will continue to act as the servicer for all loans assigned under these arrangements.

Regulatory Compliance

The meeting was held pursuant to Regulation 30 and Regulation 51(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The issuance falls within the current borrowing limits applicable to the company under Section 180(1)(c) of the Companies Act, 2013. The trading window for insiders remains closed until 48 hours after the declaration of the meeting outcome, as per insider trading regulations.