Minolta Finance Limited has secured in-principle approval from BSE Limited for its proposed rights issue of fully paid-up equity shares, marking a significant step forward in the company's capital raising initiative.

BSE Approval Details

The company received the approval through BSE's official communication dated January 30, 2026, under reference number LOD/RIGHT/RB/FIP/1610/2025-26. This approval comes in response to Minolta Finance's application that was originally submitted on March 18, 2025.

Regulatory Compliance Framework

The rights issue will be undertaken in strict adherence to multiple regulatory frameworks. The company has committed to following the applicable provisions of the Companies Act, 2013, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Additionally, all other applicable laws will be observed throughout the process.

The approval remains subject to receipt of remaining statutory and regulatory approvals as may be required for the successful completion of the rights issue.

Key Requirements and Conditions

BSE has outlined several important conditions that Minolta Finance must fulfill during the rights issue process:

• Record Date Notice: The company must provide at least three working days advance notice to the exchange before fixing the record date
• Price Disclosure: Rights issue price must be disclosed at least three working days prior to the record date
• Dematerialization: Agreements with all depositories must be in place to offer dematerialized allotment options
• Basis of Allotment: Must be approved by the Designated Stock Exchange, even in cases of under-subscription

Pending Details and Timeline

Minolta Finance has indicated that comprehensive details regarding the rights issue structure will be communicated to stakeholders in due course. The pending information includes:

• Record date for determining eligible shareholders
• Issue price per equity share
• Entitlement ratio for existing shareholders
• Complete issue schedule and timeline

Company Information

Minolta Finance Limited operates under CIN L65921WB1993PLC057502 with its registered office located in Kolkata, West Bengal. The company's equity shares are currently listed on BSE Limited under scrip code 532164 and on The Calcutta Stock Exchange Limited under scrip code 10023910.

The approval represents a crucial milestone in the company's capital expansion plans, providing a pathway for existing shareholders to participate in the growth story through the rights issue mechanism.

Minolta Finance Limited, a non-banking financial company, has reported a significant net loss of Rs 575.02 crore for the quarter ended September 30, 2025 (Q2 FY26). This marks a stark contrast to the profit of Rs 1.32 crore recorded in the same quarter of the previous year.

Key Financial Highlights

• Revenue: The company experienced negative revenue, with interest income falling to -Rs 3.61 crore, compared to Rs 23.30 crore in Q2 FY25.
• Impairment Provisions: A substantial impairment provision of Rs 370.80 crore was made during the quarter.
• Net Worth Erosion: The company's net worth saw a significant erosion of 48.65% during the quarter.

Factors Contributing to the Loss

The massive loss can be attributed to several factors:

1. Impairment Provisions: The company made substantial impairment provisions of Rs 370.80 crore, significantly impacting the bottom line.
2. Negative Interest Income: Minolta Finance reported a negative interest income of Rs 3.61 crore, indicating potential issues with its loan portfolio.
3. Interest Reversal: As highlighted by the auditors, Rs 2.74 crore of interest was reversed on impaired assets, leading to increased Expected Credit Loss (ECL) provisions and contributing to the negative revenue.

Financial Position

The company's financial position has weakened considerably:

All figures in Rs crore

The negative other equity indicates a significant erosion of shareholder value.

Auditor's Observations

The auditors have highlighted the reversal of interest on impaired assets and the consequent increase in ECL provisions, which have contributed to the negative revenue for the quarter.

Conclusion

Minolta Finance Limited's Q2 FY26 results reveal a company grappling with significant financial difficulties. The massive loss, negative interest income, and substantial impairment provisions point to serious challenges in the company's loan portfolio and overall business model. The company may need to take significant steps to address its asset quality issues and improve its financial health.