Moneyboxx Finance Limited has announced a significant capital raise, a proposed bonus share issue, and reported on its fund utilization from a preferential issue, signaling strong growth and investor confidence in the company's future.

Capital Raise and Financial Performance

Moneyboxx Finance has successfully raised INR 478.00 crore in term debt since January, demonstrating its robust fundraising capabilities. The debt has been sourced from various avenues:

This diverse funding mix highlights the company's strong relationships with lending institutions, including 11 banks and 19 financial entities.

The company has shown remarkable improvement in its asset quality. The Gross Non-Performing Asset (GNPA) ratio has significantly decreased from 7.28% to 3.26%. This improvement is attributed to an Asset Reconstruction Company (ARC) transaction and enhanced collection efforts.

As of September 30, Moneyboxx Finance reported:

• Capital to Risk-weighted Assets Ratio (CRAR): 27.1%
• Net Worth: INR 262.00 crore
• Debt-to-Equity Ratio: 2.41
• Liquidity: INR 97.00 crore

These figures indicate a strong capital position and healthy financial metrics.

Proposed Bonus Share Issue

Moneyboxx Finance's Board of Directors has recommended a bonus share issue, subject to shareholder approval. The key details of the proposed bonus issue are:

• Ratio: 1:1 (One new fully paid-up equity share for every one existing fully paid-up equity share)
• Face Value: INR 10.00 per share
• Capitalization Amount: Up to INR 37,50,27,450.00 from the Securities Premium Account

The bonus shares, once issued, will rank pari-passu with the existing equity shares in all respects.

Impact on Convertible Securities

The company has 37,37,745 outstanding convertible warrants and 10,60,400 employee stock options. Holders of these securities may be eligible for the bonus issue, subject to conversion or exercise of their respective instruments by the record date.

Preferential Issue Fund Utilization

Moneyboxx Finance has submitted its monitoring agency report for the quarter ended September 30, detailing the utilization of funds raised through its preferential issue:

• Total funds raised: INR 175.80 crore (revised down from the original INR 271.48 crore due to undersubscription)
• Allocation:
  • Onward lending purposes: INR 165.80 crore
  • General corporate purposes: INR 10.00 crore
• Utilization as of quarter end:
  • Lending purposes: INR 89.02 crore
  • General corporate purposes: INR 2.06 crore
  • Unutilized: INR 84.72 crore

The monitoring agency, Crisil Ratings Limited, reported no deviation from the stated objects of the issue.

Future Outlook

Moneyboxx Finance has indicated a strong pipeline for future funding, with debt discussions exceeding INR 500.00 crore. This suggests continued growth momentum and expansion plans for the company.

The proposed bonus issue and robust capital raise demonstrate Moneyboxx Finance's commitment to rewarding shareholders while maintaining a strong financial position for future growth.

Shareholders are advised to await further details on the record date and other specifics of the bonus issue, which will be communicated in due course.

It's worth noting that the company issued warrants at INR 302.20 per share, while the current market price stands at INR 167.56 as of October 24, indicating a potential risk of non-exercise of conversion rights. Warrant holders have 18 months from the allotment date to convert warrants into equity shares.

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.