A group of four acquirers, led by Jaykishor Chaitanyakishor Chaturvedi, has initiated an open offer for Brijlaxmi Leasing & Finance , aiming to acquire up to 100% of the public shareholding. This move comes in the wake of a proposed preferential allotment that would significantly increase the acquirers' stake in the company.

Open Offer Details

Trigger for the Open Offer

The open offer has been triggered by a proposed preferential allotment of equity shares against loan conversion. Here are the key points:

Post-Acquisition Scenario

Implications for Shareholders

1. Opportunity for Exit: Public shareholders now have an opportunity to exit their investment at a predetermined price.
2. Change in Ownership Structure: The successful completion of this offer would lead to a significant change in the company's ownership structure.
3. Potential for Delisting: While not explicitly stated, such a large acquisition of public shareholding could potentially lead to delisting discussions in the future.

Regulatory Compliance

This open offer is being made in compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Shareholders should note that:

1. The offer is not conditional upon any minimum level of acceptance.
2. It is not a competitive offer.
3. The acquirers have confirmed they have adequate financial resources to meet the obligations under the offer.

Conclusion

This open offer represents a significant corporate action for Brijlaxmi Leasing & Finance. Public shareholders should carefully consider the offer price in relation to the current market price and their own investment goals before making a decision. As always, it is advisable to consult with a financial advisor before taking any action on such offers.

Investors and market watchers will be keenly observing how this offer unfolds and its impact on the company's future direction and governance.

Brijlaxmi Leasing & Finance , a non-banking financial company, has reported a significant turnaround in its financial performance for the first quarter. The company's unaudited financial results, approved by its Board of Directors on August 13, reveal a marked improvement in profitability and operational efficiency.

Financial Highlights

Brijlaxmi Leasing & Finance reported a net profit of Rs. 18.71 lakh for the quarter, marking a substantial improvement from the loss of Rs. 62.81 lakh in the corresponding quarter of the previous year. This represents a remarkable turnaround of 129.79% in the company's bottom line.

Revenue Growth

The company's total revenue from operations increased to Rs. 56.49 lakh, up from Rs. 49.53 lakh in the same quarter last year, reflecting a growth of 14.05%. The primary driver of this growth was the rise in interest income, which increased to Rs. 56.34 lakh from Rs. 48.70 lakh, showing a year-on-year growth of 15.69%.

Operational Efficiency

A significant factor contributing to the profit turnaround was the substantial reduction in total expenses. The company managed to decrease its expenses by 71.06%, from Rs. 112.32 lakh to Rs. 32.50 lakh. This dramatic reduction in expenses played a crucial role in improving the company's profitability.

Improved Earnings Per Share

The earnings per share (EPS) stood at Rs. 0.29, a notable improvement from the negative Rs. 0.97 reported in the same quarter of the previous year. This positive EPS reflects the company's enhanced profitability and potential value creation for shareholders.

Auditor's Observations

The limited review report by the company's statutory auditors, M/s. DBS & Associates, highlighted two areas of concern:

1. Non-compliance with TDS provisions under the Income Tax Act.
2. Non-provision of interest income on loans to certain parties due to their financial constraints, although management considers these loans fully recoverable.

Management's Perspective

Despite the auditor's observations, the management of Brijlaxmi Leasing & Finance maintains that the loans on which interest income has not been provided are fully recoverable. The company attributes the non-payment of interest by some parties to their current financial difficulties.

The significant improvement in financial performance, particularly the shift from loss to profit, suggests that Brijlaxmi Leasing & Finance may be on a path to financial recovery. However, investors and stakeholders should consider the auditor's observations while assessing the company's overall financial health and future prospects.