Arihant Capital Markets Limited has issued a second corrigendum to its Extra-Ordinary General Meeting (EGM) notice, scheduled for August 21, 2025. The document provides additional disclosures and corrects a valuation error related to the company's proposed preferential allotment of equity shares.

Fundraising Plans and Allocation

The company aims to raise ₹91.35 crore through the preferential issue. The funds are earmarked for various purposes:

Valuation Error and Correction

The corrigendum reveals an inadvertent error in the Profit After Tax (PAT) figure for FY 2023 used in the initial valuation report. The PAT was incorrectly stated as ₹3,858.34 lakhs, while the correct figure is ₹2,911.76 lakhs. This error led to the following adjustments:

• The Price to Earnings Capacity Value (PECV) valuation has been revised to ₹81.29 per share.
• The average valuation has been adjusted to ₹76.57 per share, down from the originally mentioned ₹77.31.

Despite these revisions, the proposed issue price remains unchanged at ₹87 per share, as it continues to meet regulatory requirements.

Additional Disclosures

The corrigendum provides more details on the intended use of the funds:

1. Business Growth & Expansion: Funds will support the expansion of broking operations, enhancement of client-facing services, strengthening of trading platforms, and opening of new regional offices.

2. Technology & Infrastructure Upgrade: Allocation for upgrading IT infrastructure, automated trading systems, cybersecurity measures, and integration with new depositories and exchanges.

3. Working Capital & Capital Expenditure: To meet short- and long-term working capital needs and capital expenditure requirements.

4. Strategic Initiatives & Diversification: Facilitate potential entry into new segments, launch of advisory or fintech services, and pursuit of acquisitions or alliances, subject to board and regulatory approval.

5. General Corporate Purposes: For broader purposes permissible under applicable law, including debt repayment, marketing, compliance, and enhancements in research and analytics infrastructure.

Timeline and Flexibility

The company has set a tentative timeline of 12 months from the receipt of funds for the utilization of the issue proceeds. However, Arihant Capital Markets has noted that the allocation may deviate by ±10% depending on future circumstances and external factors.

Addendum to Valuation Report

The Registered Valuer has issued an addendum dated August 14, 2025, to the original Valuation Report dated July 25, 2025, reflecting the corrected figures. Both documents will be available for inspection by members at the EGM.

The company has apologized for the human error and any inconvenience caused. Shareholders are advised to refer to the corrigendum, which forms an integral part of the EGM Notice, for complete details.

Arihant Capital Markets Limited , a prominent player in the financial services sector, has announced a significant expansion of its business portfolio through strategic acquisitions made by its wholly-owned subsidiary, Arihant Elite Financial Solutions Limited (AEFSL).

Key Acquisitions

AEFSL has successfully completed the acquisition of two entities:

1. Arihant Money Marvel Wealth Management Limited
2. Arihant Investment Banking Services Limited

Both acquired companies have now become step-down subsidiaries of Arihant Capital Markets Limited, marking a notable expansion in the company's financial services offerings.

Financial Details

The acquisition details reveal:

• Each acquired entity has an authorized and paid-up capital of Rs 10.00 lakh.
• The acquisitions were completed through cash consideration, with equity shares subscribed at par value.
• AEFSL now holds 100% ownership of both entities.

Business Focus

The newly acquired subsidiaries are set to enhance Arihant Capital Markets' service portfolio:

Arihant Investment Banking Services Limited

• Merchant banking
• Portfolio management
• Underwriting
• Advisory services

Arihant Money Marvel Wealth Management Limited

• Wealth management activities
• Business acquisitions

Current Status and Future Prospects

Both acquired entities are newly incorporated in India and have not yet commenced business operations. This strategic move positions Arihant Capital Markets to expand its footprint in various segments of the financial services sector.

Regulatory Compliance

The company has duly informed the stock exchanges about these acquisitions, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also adheres to the recent SEBI circular dated July 13, 2023.

Related Party Transaction

The acquisitions fall under the category of related party transactions, as the entities were acquired by a wholly-owned subsidiary of Arihant Capital Markets. However, the company has stated that the transactions were conducted at arm's length.

This strategic expansion by Arihant Capital Markets Limited demonstrates the company's commitment to diversifying its financial services portfolio and strengthening its position in the market. As these new entities begin operations, they are expected to contribute to the company's growth and offer a wider range of services to its clients.