NewsCorporate ActionsBSE Returns Fundviser Capital's Rs 75.23 Crore Convertible Warrants ApplicationBSE Returns Fundviser Capital's Rs 75.23 Crore Convertible Warrants Application
The Bombay Stock Exchange (BSE) has returned Fundviser Capital's application for in-principle approval of a preferential issue of convertible warrants worth Rs 75.23 crore. The rejection was due to concerns over vague objectives, lack of detailed information about investee entities, and questionable proposed investments. The company sought to issue 64,85,000 convertible warrants at Rs 116.00 each. The BSE specifically scrutinized planned investments in DARS Transtrade Pvt Ltd, New India Re & Infra LLP, and Starlight Box Theatres Private Limited, citing issues with their financial patterns and lack of clarity. Despite Fundviser Capital's responses to initial queries, the BSE remained unsatisfied with the level of transparency provided.
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Fundviser Capital (India) Limited faced a setback as the Bombay Stock Exchange (BSE) returned its application for in-principle approval of a preferential issue of convertible warrants worth Rs 75.23 crore. The decision, communicated on September 5, 2025, highlights concerns over the company's proposed fund utilization and lack of transparency in its investment plans.
Preferential Issue Details
The company had sought to issue 64,85,000 convertible warrants priced at Rs 116.00 each, comprising a face value of Rs 10.00 and a premium of Rs 106.00. This move, approved by shareholders through a special resolution on July 15, 2025, would have resulted in the allottees holding approximately 52% of the post-issue capital.
BSE's Concerns
The BSE raised several red flags in its assessment:
Vague Objectives: The exchange noted that the stated objects of the issue were open-ended and unclear, potentially hindering shareholders from making informed decisions.
Lack of Detailed Information: The application failed to provide specific details about the investee entities and the proposed fund utilization.
Questionable Investments: The BSE specifically scrutinized planned investments in three entities:
DARS Transtrade Pvt Ltd: A proposed Rs 45.00 crore investment raised concerns due to the company's minimal profitability and questionable financial patterns.
New India Re & Infra LLP: A planned Rs 10.00 crore investment in a newly incorporated entity (October 2024) with zero revenue was questioned.
Starlight Box Theatres Private Limited: The proposed Rs 10.00 crore investment was scrutinized due to inconsistent financial patterns and lack of clarity on expenses.
Company's Response and BSE's Decision
Despite Fundviser Capital's detailed responses to initial queries, the BSE remained unsatisfied with the level of transparency and clarity provided. Consequently, the exchange returned the application on September 5, 2025.
Implications and Next Steps
This development raises questions about Fundviser Capital's expansion plans and its ability to raise funds through this route. The company will need to address the concerns raised by the BSE, particularly regarding the clarity of fund utilization and the financial health of its proposed investee companies, if it wishes to pursue this preferential issue in the future.
Investors and market watchers will be keenly observing how Fundviser Capital responds to this setback and whether it will revise its fundraising strategy or provide more detailed information to meet regulatory requirements.
As of now, Fundviser Capital has not announced its next course of action following the BSE's decision.
Historical Stock Returns for Fundviser Capital
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.65% | +10.26% | +12.27% | +40.25% | +38.26% | +3,133.08% |
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