Finkurve Financial Services Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, in compliance with Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was prepared by CRISIL Ratings Limited and covers the utilization of proceeds from the company's preferential issue of equity shares and share warrants.

Issue Details and Revisions

The preferential issue was conducted between May 21 and May 27, 2025, originally targeting Rs. 157.11 crores. However, due to undersubscription caused by non-participation of some proposed allottees, the issue size was revised to Rs. 141.50 crores.

The revised issue proceeds comprise Rs. 101.50 crores from preferential issue of equity shares and Rs. 40.00 crores from preferential issue of warrants convertible into equity shares.

Proceeds Utilization Status

As of December 31, 2025, the company has utilized Rs. 111.50 crores from the total revised proceeds of Rs. 141.50 crores. The funds were deployed for onward lending, investments, and repayment of borrowings obtained in the ordinary course of business.

No additional utilization occurred during the reported quarter ended December 31, 2025.

Outstanding Warrant Subscriptions

The unutilized amount of Rs. 30.00 crores represents 75% of the warrant issue size that is yet to be received from warrant holders. During the initial quarter ended June 30, 2025, the company received Rs. 10.00 crores as subscription amount, representing 25% of the warrant issue size. According to the EGM notice dated January 08, 2025, warrant holders have the option to convert warrants into equity shares within 18 months from the allotment date.

Regulatory Compliance

The monitoring agency report confirms that all utilization has been in accordance with disclosures made in the offer document. No material deviations were observed, and no unfavorable events affecting the viability of the stated objects were reported. The company's audit committee reviewed the draft monitoring agency report, which was subsequently approved by the board of directors at their meeting held on February 06, 2026.

Company Background

Finkurve Financial Services Limited operates as a Non-Banking Financial Company (NBFC) with promoters including Mrs. Devkumari Manekchand Kothari, Mrs. Kalawati Prithviraj Kothari, Mr. Ketan B Kothari, and Mrs. Mohinidevi Bhanwarlal Kothari. The company's registered office is located at 202/A, 02nd Floor, Trade World, D-Wing, Kamala Mills Compound, S. B. Marg, Lower Parel West, Mumbai, Maharashtra.

Finkurve Financial Services Limited has received credit rating reaffirmation and enhancement from Crisil Ratings Limited, strengthening its position in the non-banking financial company sector. The development was communicated to stock exchanges under Regulation 30 of SEBI listing requirements.

Credit Rating Details

Crisil Ratings has taken comprehensive rating actions across the company's debt instruments and banking facilities:

The rating agency assigned its 'Crisil BBB/Stable' rating to Rs.100 crore non convertible debentures while reaffirming the same rating on existing long-term bank facilities and non convertible debentures. This brings the total rated NCD amount to Rs.300 crore.

Company Profile and Operations

Finkurve Financial Services, operating under the Arvog brand, was established in 1984 as Sanjay Leasing Ltd and received its NBFC license from the Reserve Bank of India in 1998. The company was acquired by Mr. Ketan Kothari in 2010, who brings over two decades of experience in precious metals and finance industry.

The company's assets under management stood at Rs.671 crore as on September 30, 2025, with a diversified portfolio composition:

Finkurve operates through a network of 92 branches as on September 30, 2025, and maintains average ticket sizes of Rs.1,33,000 for gold loans and Rs.96,000 for retail loans.

Financial Performance and Capitalisation

The company demonstrates adequate capitalisation with networth of Rs.329 crore and gearing of 1.1 times as on September 30, 2025. This represents significant growth from Rs.206 crore networth as on March 31, 2025, following equity infusion of Rs.111.5 crore during the first quarter of fiscal 2026.

Rating Strengths and Considerations

Crisil Ratings highlighted several key strengths supporting the rating, including adequate capitalisation backed by comfortable earnings profile and strong promoter credentials. The promoter group held 56.3% stake as on September 30, 2025, with experienced management including Mr. Naveen Kottala as CEO and Mr. Aakash Jain as CFO.

However, the rating also considers challenges such as small scale of operations compared to industry size and limited seasoning of the portfolio. The company's outstanding borrowings of Rs.375 crore as on September 30, 2025 comprised NCDs (21%), term loans (41%), cash credit facilities (7%) and inter-corporate deposits (31%).

Market Position and Outlook

Finkurve is part of the Augmont group, India's premier bullion trading entity, which provides comprehensive gold ecosystem spanning importing, refining and distribution. The stable outlook reflects Crisil's belief that the company will continue benefiting from extensive promoter and management experience along with adequate capitalisation.

The rating agency expects the company to maintain steady state gearing below 3 times over the medium term, with capital position supported by strong promoter holding and steady accretion to reserves.