Moneyboxx Finance has announced significant corporate actions through a postal ballot notice, seeking shareholder approval for two key resolutions that could potentially reshape its capital structure.

Authorized Share Capital Increase

The company proposes to increase its authorized share capital from Rs. 40.00 crores to Rs. 100.00 crores. This increase would comprise 10 crore equity shares of Rs. 10 each, up from the current 4 crore shares. This move is aimed at accommodating the proposed bonus share issue and future growth plans.

Bonus Share Issue

Moneyboxx Finance has proposed a bonus share issue in the ratio of 1:1. This means shareholders may receive one new fully paid equity share for every existing share held. The company plans to capitalize up to Rs. 37.50 crores from its securities premium account for this purpose.

Key Details of the Bonus Issue

Financial Implications

As of March 31, 2025, Moneyboxx Finance reported a balance of Rs. 203.46 crores in its securities premium account. Post the proposed bonus issue, this balance is expected to be approximately Rs. 165.96 crores, subject to variations based on the actual record date.

Additional Information

• The company has 37,37,745 outstanding convertible warrants and 10,60,400 employee stock options, which will also be eligible for the bonus issue upon conversion or exercise.
• The e-voting period for these resolutions is set from November 5, 2025, to December 4, 2025.
• The results of the postal ballot are expected to be declared by December 8, 2025.

Impact on Shareholders

If approved, this bonus issue could potentially increase the number of shares in circulation, improving liquidity for shareholders. However, it's important to note that while the number of shares held by each shareholder would double, the overall value of their holding may not change proportionately as the stock price typically adjusts to reflect the increased number of shares.

Shareholders are advised to participate in the e-voting process to express their decision on these significant corporate actions. The outcome of this postal ballot could have important implications for Moneyboxx Finance's capital structure and shareholder value in the near term.

Moneyboxx Finance Limited , a non-banking financial company (NBFC) focused on micro-enterprise lending, has transformed its business model toward secured lending. The company's secured disbursements reached 69% in the latest quarterly results compared to 43% in the same period last year. The secured book now comprises 55% of its Assets Under Management (AUM) of ₹892.00 crore, up from 32% in the previous year, with a target of reaching 70% by March 2026.

Business Transformation and Growth

Secured Lending Focus

The company has significantly increased its secured lending portfolio, demonstrating a strategic shift in its business model.

AUM Growth

Moneyboxx Finance's AUM has grown to ₹892.00 crore, indicating strong market performance.

Branch Network

The company now operates 163 branches across 12 states, expanding its geographical presence.

Capital Raising

Moneyboxx Finance has raised equity capital of ₹175.80 crore, with ₹91.10 crore already received and the remaining ₹84.70 crore expected by March 2026.

Financial Highlights

The company reported a robust Capital Adequacy Ratio and improved asset quality, with Gross NPA reduced from 7.28% following an ARC transaction.

Strategic Focus

Moneyboxx Finance is targeting the upper tier of micro-enterprises with the following strategy:

1. Loan Ticket Size: Focusing on average ticket sizes of ₹5-10 lakhs.
2. Customer Quality: Targeting customers with 650+ bureau scores.
3. Portfolio Diversification: Reducing its livestock segment exposure to 37% from 61% in the previous year.

Conclusion

Moneyboxx Finance's transformation towards secured lending and its focus on quality customers in the micro-enterprise segment demonstrate a strategic shift aimed at sustainable growth and improved asset quality. The company's expansion plans, coupled with its capital raising efforts, position it for potential growth in the competitive NBFC sector. The modest profit figures suggest that the company may be in a phase of investing for future growth.