Gowra Leasing & Finance Limited (GLFL) has received a significant boost to its capital raising plans. The company recently secured in-principle approval from BSE Limited for a preferential share issue that could potentially raise up to Rs. 30 crore.

Key Details of the Approval

BSE Limited has granted in-principle approval to GLFL for the issuance of 24,97,500 equity shares. Here are the essential details of the approved share issue:

Implications and Next Steps

This approval marks a crucial step for Gowra Leasing & Finance Limited in its efforts to raise capital. However, it's important to note that this is an in-principle approval, and the company still needs to complete several steps before the shares can be issued and listed:

1. Regulatory Compliance: GLFL must ensure strict adherence to various regulations, including:

   • Companies Act, 2013
   • Securities Contracts (Regulation) Act, 1956
   • Securities and Exchange Board of India Act, 1992
   • Depositories Act, 1996
   • SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
   • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

2. Separate Listing Approval: The company will need to obtain separate approval for listing the new shares after the allotment process is complete.

3. Timely Listing Application: GLFL is required to make a listing application within 20 days from the date of allotment, along with all necessary documents as specified by the stock exchange.

4. Internal Controls: The company is advised to strengthen its internal controls to monitor trades by the proposed allottees in the company's scrip, ensuring compliance with Chapter V of SEBI (ICDR) Regulations.

This preferential share issue, if successful, could provide Gowra Leasing & Finance Limited with additional capital to support its business operations and growth strategies. Investors and stakeholders should keep a close eye on further announcements from the company regarding the progress of this share issue and its impact on the company's financial position.

As always, potential investors are advised to conduct their own research and consider their financial goals before making any investment decisions based on this development.

Gowra Leasing & Finance Limited (GLFL) has reported a significant increase in its quarterly profit for Q2, alongside announcing a substantial investment plan. The company's board has approved unaudited financial results for the quarter and half year ended September 30, revealing robust growth in both revenue and profitability.

Financial Highlights

GLFL's Q2 performance showcases remarkable year-on-year growth:

All figures in Rs lakhs, except for Basic EPS in Rs

For the half-year ended September 30, the company's profit reached Rs 248.47 lakhs, compared to Rs 96.71 lakhs in the same period last year, marking a 156.9% increase.

Operational Performance

The company's revenue from operations saw a substantial increase, primarily driven by interest income. Interest revenue for Q2 stood at Rs 286.89 lakhs, compared to Rs 87.08 lakhs in the same quarter last year, representing a 229.5% growth.

Investment Approval

In a strategic move, GLFL's Board of Directors has approved investing surplus funds up to Rs 10 crore in shares and mutual funds. This decision indicates the company's intent to diversify its investment portfolio and potentially boost returns on idle funds.

Financial Position

As of September 30, Gowra Leasing & Finance reported:

• Total assets of Rs 6,364.51 lakhs, up from Rs 2,828.12 lakhs a year ago
• Loans portfolio increased to Rs 5,863.32 lakhs from Rs 2,408.56 lakhs
• Total equity rose to Rs 3,590.50 lakhs from Rs 1,831.82 lakhs

Conclusion

Gowra Leasing & Finance Limited's Q2 results demonstrate strong financial performance with substantial growth in profit and revenue. The approval to invest up to Rs 10 crore in shares and mutual funds indicates a proactive approach to managing surplus funds. These developments reflect the company's growth trajectory and strategic financial management.