LKP Finance Limited, a Mumbai-based financial services company, has announced a significant move to bolster its capital base through a rights issue. The company's board of directors has approved a rights issue aimed at raising up to Rs 126.00 crore by offering new shares to existing shareholders.

Rights Issue Details

The rights issue, as approved by the board on September 5, 2025, includes the following key terms:

• Issue Size: Up to 27,93,027 fully paid-up equity shares
• Issue Price: Rs 450.00 per share (including a premium of Rs 440.00)
• Rights Entitlement Ratio: 6:27 (6 rights shares for every 27 shares held)
• Record Date: September 11, 2025
• Issue Period: September 18, 2025 to September 25, 2025

Impact on Share Capital

The rights issue is set to have a notable impact on LKP Finance's share capital structure:

This represents a potential increase of approximately 22.22% in the company's outstanding equity shares, subject to full subscription of the rights issue.

Rights Entitlements

LKP Finance has made arrangements with NSDL and CDSL for the crediting of Rights Entitlements in dematerialized form to the demat accounts of eligible shareholders. These entitlements will be credited prior to the issue opening date under the ISIN INE724A20017.

Use of Proceeds

While specific details on the use of proceeds were not provided in the announcement, rights issues are typically used to raise capital for various corporate purposes such as debt reduction, working capital requirements, or funding expansion plans.

Regulatory Compliance

The rights issue is being 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. The company has also approved the Letter of Offer to be submitted to SEBI and BSE Limited.

Investor Considerations

Eligible shareholders of LKP Finance should note the following:

1. The record date of September 11, 2025, determines the shareholders eligible to participate in the rights issue.
2. The rights issue price of Rs 450.00 per share represents the opportunity for existing shareholders to acquire additional shares at a predetermined price.
3. Shareholders will need to decide whether to exercise their rights, sell them, or let them lapse based on their individual financial situations and views on the company's prospects.

As with any investment decision, potential participants in the rights issue are advised to carefully review the Letter of Offer and consider seeking independent financial advice before making a decision.

LKP Finance Limited's move to raise capital through this rights issue may be seen as a strategic step to strengthen its financial position and support its business objectives in the evolving financial services landscape.

LKP Finance Limited, a prominent financial services company, has achieved significant milestones in its capital raising efforts. The company recently received in-principle approval from BSE Limited for its proposed rights issue and approved an additional fundraising initiative.

Rights Issue Details

The approved rights issue is set to raise up to Rs. 126.00 crore, offering eligible equity shareholders of LKP Finance the opportunity to participate in the company's growth. This move is expected to strengthen the company's financial position and support its future endeavors.

Regulatory Approval

BSE Limited, one of India's leading stock exchanges, provided the crucial in-principle approval for LKP Finance's Draft Letter of Offer. The approval letter marks a significant step forward in the company's capital raising process.

Company's Announcement

LKP Finance Limited officially announced the receipt of the in-principle approval in a regulatory filing. Ruby Chauhan, Company Secretary & Compliance Officer of LKP Finance, confirmed the development in a communication to the BSE.

Additional Fundraising Approval

In a separate development, LKP Finance's Board of Directors has approved raising funds up to INR 25.00 crore through unsecured, unrated, unlisted, redeemable, taxable, non-convertible debentures (NCDs) via private placement. The NCDs will offer a coupon interest rate of 15.00% per annum with quarterly interest payments and bullet principal repayment at maturity.

NCD Terms

The tenure and maturity date of the NCDs will be determined at the time of allotment. In case of payment delays exceeding three months, an additional interest of 2.00% per month will be charged on the defaulted amount. The debentures will not be listed on any stock exchange, and redemption will be made either from profits or fresh issue.

Implications for Shareholders

The rights issue presents an opportunity for existing shareholders to increase their stake in the company. It allows them to purchase additional shares at a potentially favorable price, maintaining their proportionate ownership in LKP Finance.

Next Steps

While the in-principle approval for the rights issue is a crucial milestone, investors should note that the company will need to complete further regulatory requirements before the rights issue can be launched. LKP Finance is expected to provide more details about the rights issue, including the price, ratio, and timeline, in the coming weeks.

The fundraising through NCDs is subject to regulatory approvals. Once approved, it will provide the company with additional capital alongside the rights issue.

The successful completion of these fundraising initiatives could provide LKP Finance with substantial capital to fuel its growth strategies, enhance its market position, and create value for its shareholders.