Mangal Credit & Fincorp Limited has successfully completed a significant financial transaction, converting 15.5 lakh warrants into equity shares. This move has resulted in a substantial capital infusion and an increase in promoter holding.

Key Highlights

• Warrant Conversion: 15.5 lakh warrants converted to equity shares
• Issue Price: ₹110.00 per share (face value ₹10.00, premium ₹100.00)
• Capital Raised: ₹127.90 crore
• Investor: Promoter Hardik Jain
• Equity Capital Expansion: Company's equity capital now stands at ₹21.11 crore
• Promoter Holding: Increased to 11.26%

Transaction Details

Mangal Credit & Fincorp Limited's Board of Directors approved the allotment of 15,50,000 equity shares with a face value of ₹10.00 each at an issue price of ₹110.00 per share. This conversion was executed upon receiving the balance consideration of ₹12,78,75,000, representing 75% of the issue price per warrant.

Impact on Shareholding

The transaction has significantly altered the company's shareholding structure:

Capital Structure Update

Following this conversion, Mangal Credit & Fincorp's issued, subscribed, and paid-up Equity Share Capital has increased to ₹21,11,39,860, consisting of 2,11,13,986 fully paid-up Equity Shares of ₹10.00 each.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 read with Regulation 51 of SEBI (LODR) Regulations, 2015. The newly allotted equity shares will rank pari-passu in all respects with the existing equity shares of the company.

This strategic move by Mangal Credit & Fincorp Limited not only strengthens its capital base but also demonstrates the promoter's confidence in the company's future prospects. The increased promoter holding may be viewed positively by the market, potentially influencing investor sentiment.

Mangal Credit & Fincorp Limited , a Base Layer Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India, has announced its financial results for the first quarter, along with several key corporate decisions.

Financial Performance

The company reported a total revenue from operations of Rs 1,447.22 lakhs for Q1, marking a 21.9% increase from Rs 1,187.17 lakhs in the same quarter last year. This revenue comprised Rs 1,404.57 lakhs from interest income and Rs 42.65 lakhs from fees and commission income.

Despite the growth in revenue, net profit for the quarter stood at Rs 299.94 lakhs, down from Rs 374.70 lakhs in Q1 of the previous year. This decline in profitability can be attributed to higher expenses, particularly in finance costs and impairment on financial instruments.

Key Financial Metrics

The company's finance costs saw a significant increase of 65.5% year-over-year, rising from Rs 387.63 lakhs to Rs 641.57 lakhs. This surge in finance costs, along with higher impairment on financial instruments and increased employee benefits expense, contributed to the decline in net profit despite the revenue growth.

Corporate Developments

The Board of Directors, in their meeting held on August 5, made several key decisions:

1. Board Reappointment: Mr. Sriram Sankaranarayanan has been re-appointed as an Independent Director for a second term of five years, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. Secretarial Auditor Appointment: Vijay S. Tiwari & Associates, Practicing Company Secretaries, have been appointed as the Secretarial Auditor for a term of five consecutive years, subject to shareholder approval.

3. Annual General Meeting: The company's 63rd AGM is scheduled for September 25, to be held through video conferencing.

4. Dividend Record Date: September 17 has been fixed as the record date for determining members eligible to receive dividends, if approved at the AGM.

Debt Issuance

During the quarter, Mangal Credit & Fincorp issued 2,500 fully paid, senior, secured, rated, listed, redeemable, taxable non-convertible debentures (NCDs). Each NCD has a face value of Rs 1,00,000, aggregating to Rs 2,500 lakhs. These NCDs are secured by hypothecation over specified receivables of the company to the extent of 125% of the outstanding amount.

Financial Ratios

As of the end of the quarter, the company reported:

• Debt-equity ratio: 1.51 times
• Total debt to total assets ratio: 0.58
• Net profit margin: 20.73%
• Gross Non-Performing Advances (GNPA) ratio: 1.40%
• Net Non-Performing Advances (NNPA) ratio: 0.76%

Mangal Credit & Fincorp Limited continues to operate as a Base Layer NBFC, focusing on providing financial services while navigating the challenges of increased costs in a dynamic market environment.