Jagsonpal Finance to Acquire Welcast Finstocks, Plans Name Change to Jagsonpal Services

Jagsonpal Finance & Leasing Limited has announced two significant developments that could reshape the company's future. The Board of Directors has approved the acquisition of Welcast Finstocks Private Limited and initiated steps to change the company's name to Jagsonpal Services Limited.

Acquisition of Welcast Finstocks

In a strategic move, Jagsonpal Finance's Board has given the green light to acquire a 100% stake in Welcast Finstocks Private Limited. The deal, valued at Rs. 212.23 per share, will be executed through cash consideration. This acquisition encompasses the entire paid-up share capital of Welcast Finstocks, which includes 1,97,170 equity shares and 52,750 compulsorily convertible preference shares, both with a face value of Rs. 10 each.

Welcast Finstocks, incorporated in 1996, is registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India. Despite its long-standing presence in the financial services sector, the company has reported nil turnover for the past three financial years from 2021-22 to 2023-24.

The completion of this acquisition is subject to necessary regulatory approvals, particularly from the Reserve Bank of India. Jagsonpal Finance anticipates finalizing the transaction by December 2025, assuming all regulatory hurdles are cleared.

Proposed Name Change

In a parallel development, Jagsonpal Finance has received a no-objection letter from the Registrar of Companies, Central Registration Centre, regarding its proposed name change to "Jagsonpal Services Limited". This change, however, is contingent upon shareholder approval at the upcoming Annual General Meeting.

Strategic Implications

While specific details about the strategic goals behind the acquisition were not disclosed, the move suggests Jagsonpal Finance's intent to expand its footprint in the financial services sector. By acquiring an NBFC with an established regulatory framework, Jagsonpal could be positioning itself for growth in new financial service areas.

The proposed name change to Jagsonpal Services Limited might indicate a broader shift in the company's business focus, potentially signaling diversification beyond its current finance and leasing operations.

Regulatory Compliance

It's worth noting that the acquisition is not classified as a related party transaction, ensuring compliance with regulatory standards. The company has affirmed that there will be no change or impact on its current management or control structure as a result of this acquisition.

As Jagsonpal Finance & Leasing Limited embarks on these significant changes, stakeholders will be keenly watching how these strategic moves unfold and impact the company's future trajectory in the financial services landscape.