Capital Trust Limited , a publicly listed financial institution with four decades of experience in India's diverse financial landscape, has successfully completed its rights issue, raising ₹23.81 crore. The issue was oversubscribed by 1.33 times, demonstrating strong investor confidence in the company's strategic direction.

Strategic Shift to Secured Lending

In a significant move, Capital Trust has announced its entry into the gold loan business, marking a strategic shift towards secured lending. This decision comes as the company aims to strengthen its balance sheet and focus on high-quality, low-risk assets.

Key Developments

1. Rights Issue Success: The company's rights issue of 1,70,09,702 equity shares at ₹14 per share (including a premium of ₹4 per share) was successfully closed, raising a total of ₹23.81 crore.

2. Gold Loan Launch: Capital Trust has already opened its first two gold loan branches in Western UP and Delhi, with branch disbursements crossing ₹75 lakh in the first month.

3. Business Correspondent Partnership: The company has launched a risk-free Business Correspondent partnership with Suryoday Small Finance Bank, which is now active across 47 branches (Phase 1).

4. Portfolio Restructuring: Capital Trust has taken a decision to write off and provide for its existing unsecured loan portfolio, which has faced persistent stress in recent periods.

Financial Performance

The company's financial results for Q2 reflect the impact of this strategic shift:

The significant loss in Q2 FY26 is primarily attributed to the impairment and write-offs of financial instruments amounting to ₹1,605.62 lakhs, as part of the company's strategy to clean up its balance sheet.

Future Outlook

Despite the shift towards secured lending, Capital Trust will continue to offer unsecured MSME and shopkeeper loans through co-lending and partnership models with established financial institutions. The company plans to leverage its extensive network of 250+ branches across rural and semi-urban India for this purpose.

Yogen Khosla, Managing Director of Capital Trust Limited, commented on the developments: "Our objective is to start afresh in secured lending, with a strong focus on gold loans and other low-risk businesses. At the same time, we remain committed to serving MSME borrowers through our partnership and co-lending models, as well as our own portfolio. The successful completion of the rights issue strengthens our capital base and supports our long-term vision."

With this balanced approach, Capital Trust Limited aims to build a resilient, diversified lending model that addresses the credit needs of underserved markets while ensuring portfolio quality and sustainable growth.

As the company transitions into this new phase, investors and stakeholders will be keenly watching how effectively Capital Trust can execute its strategic shift and capitalize on the opportunities in the secured lending space, particularly in the gold loan segment.

Capital Trust Limited , a financial services company, has successfully concluded its rights issue, raising Rs. 238.14 crore through the allotment of 1.70 crore equity shares. This corporate action marks a significant capital infusion for the company, potentially strengthening its financial position.

Rights Issue Details

The company completed the allotment of 17,009,702 fully paid equity shares at Rs. 14.00 per share, which includes a premium of Rs. 4.00 per share. This rights issue was approved for eligible equity shareholders as of the record date October 10, 2025.

Key Highlights of the Rights Issue

Impact on Share Capital

Following this allotment, Capital Trust Limited's paid-up equity share capital has increased significantly:

Additional Information

The company has kept some rights equity shares in abeyance due to a pending court dispute regarding the ownership of underlying equity shares. This prudent measure ensures compliance with legal proceedings while completing the rights issue process.

The rights issue was conducted in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and other applicable laws.

Corporate Governance

The allotment of shares was approved by the Board of Directors at a meeting held on November 12, 2025. This meeting, which commenced at 5:30 PM and concluded at 6:10 PM, also finalized the basis of allotment in consultation with the Registrar to the Issue and the Designated Stock Exchange, BSE Limited.

This successful rights issue demonstrates Capital Trust Limited's ability to raise capital and potentially signals investor confidence in the company's future prospects. However, investors should conduct their own research and consider market conditions before making investment decisions.