Arihant Capital Markets Limited (ACML) has disclosed a significant deviation in its preferential equity issue for the quarter ended September 30, 2025. The company, which had initially planned a larger allocation, reported a partial allotment due to limited investor participation.

Partial Allotment Details

ACML received confirmation from only one of the proposed allottees, resulting in a substantial reduction in the number of shares issued. The company allotted 5,00,000 equity shares, amounting to ₹4.35 crores, to this single investor. This partial subscription represents a significant deviation from the original plan, which had envisioned a much larger issue.

Revised Fund Allocation

The partial allotment has led to a substantial revision in the fund allocation across various objectives. The company has adjusted its plans as follows:

The revised allocations show a uniform 95.23% reduction across all objectives, reflecting the significant impact of the partial subscription on the company's planned utilization of funds.

Impact on Company's Plans

The substantial decrease in available funds may potentially affect Arihant Capital Markets' immediate growth and expansion strategies. The company may need to reassess its plans for business growth, technology upgrades, and working capital management in light of the reduced capital inflow.

Management's Response

As per the statement of deviation filed by the company, ACML has acknowledged the partial allotment and the resulting changes in fund allocation. The company has not provided specific comments on how it plans to address the shortfall or adjust its strategic initiatives in response to the reduced funding.

Market Implications

This development may have implications for Arihant Capital Markets' short to medium-term growth prospects. Investors and market analysts will likely be watching closely to see how the company adapts its strategies to the reduced capital raise and whether it explores alternative funding options to support its original growth plans.

The partial allotment in ACML's preferential issue underscores the challenges companies may face in the current market environment when raising capital through equity issues. It also highlights the importance of having contingency plans in place for scenarios where fundraising efforts do not meet initial expectations.

Arihant Capital Markets , a prominent player in the Indian financial services sector, has reported a significant decline in its financial performance for the second quarter. The company's consolidated results show a notable decrease in both profit and revenue compared to the same period last year.

Key Financial Highlights

• Net Profit: Arihant Capital Markets posted a consolidated net profit of ₹131.00 crore for Q2, down 34% from ₹199.00 crore in the corresponding quarter of the previous year.
• Revenue: The company's revenue decreased to ₹570.00 crore, marking a 25% decline from ₹764.00 crore year-over-year.

Segment Performance

The company's financial results indicate challenges across its main business segments:

Financial Position

As of September 30, Arihant Capital Markets' consolidated balance sheet shows:

Management Initiatives

Despite the challenging quarter, Arihant Capital Markets has been proactive in its strategic moves:

1. Equity Issuance: The company issued 5,00,000 equity shares on a preferential basis at ₹87.00 per share to non-promoter entities, as approved in an Extraordinary General Meeting on August 21.

2. Corporate Restructuring: On August 26, the Board of Directors approved a Composite Scheme of Arrangement involving several group companies, subject to regulatory approvals.

3. Subsidiary Divestment: In October of the previous year, Arihant sold its entire stake in Arihant Insurance Broking Services Limited for ₹438.07 lakh, recognizing a gain of ₹329.90 lakh in its consolidated financial statements.

Market Context

The decline in Arihant Capital Markets' performance comes amid a challenging environment for financial services companies. Factors such as market volatility, regulatory changes, and evolving investor preferences may have contributed to the reduced revenue and profit figures.

Conclusion

While Arihant Capital Markets faces short-term challenges, as evidenced by the Q2 results, the company's proactive approach to corporate restructuring and capital raising suggests a focus on long-term strategic positioning in the competitive financial services landscape.

Note: All figures are in Indian Rupees (₹) and are based on the consolidated financial results for the quarter ended September 30.