Newtime Infrastructure Limited (BSE: 531959) has received a significant boost to its capital raising plans. The BSE Limited has granted in-principle approval for the company to issue 2,35,50,530 compulsorily convertible preference shares (CCPS) on a preferential basis to its promoters.

Key Details of the Preferential Issue

Implications and Next Steps

Capital Infusion

The preferential issue, if fully subscribed, could bring in up to Rs. 223.50 crore to Newtime Infrastructure, significantly bolstering its financial position.

Regulatory Compliance

The company must now comply with all regulatory requirements and obtain separate listing approval for the shares.

Conversion to Equity

As these are compulsorily convertible preference shares, they will eventually convert into equity shares, potentially altering the company's equity structure in the future.

Promoter Commitment

The preferential issue to promoters signals their continued commitment and confidence in the company's prospects.

Recent Financial Performance

Newtime Infrastructure recently published its unaudited financial results for the quarter and half-year ended September 30. While specific figures are not provided in the available data, investors interested in the company's performance can access these results on the company's website ( www.newtimeinfra.in ) and the BSE website ( www.bseindia.com ).

The approval for this substantial preferential issue comes at a time when companies are seeking to strengthen their capital base. For Newtime Infrastructure, this move could provide the financial flexibility needed for its future growth plans and operations.

Investors and market participants will be keenly watching how the company utilizes these funds and the impact on its business performance in the coming quarters.

Newtime Infrastructure Limited , a company operating in real estate and hospitality segments, has reported a decline in financial performance for the first quarter. The company's board meeting, held on August 14, revealed several key financial updates and corporate actions.

Financial Performance

On a standalone basis, Newtime Infrastructure reported a net loss of Rs 15.21 lakhs for the quarter, compared to a loss of Rs 26.66 lakhs in the same quarter last year. While the loss has narrowed year-over-year, it represents a reversal from the profit of Rs 22.51 lakhs reported in the previous quarter.

The company's consolidated performance showed a more significant decline:

Revenue from operations saw a substantial decrease of 39.01% year-over-year, falling from Rs 145.92 lakhs to Rs 88.99 lakhs. The total income, including other income, also declined by 44.67%.

Segment Performance

The company's real estate segment reported revenue of Rs 70 lakhs, down from Rs 100 lakhs in the same quarter last year. The hospitality segment's revenue decreased to Rs 18.99 lakhs from Rs 45.92 lakhs year-over-year.

Both segments reported losses before tax:

• Real estate: Loss of Rs 82.62 lakhs
• Hospitality: Loss of Rs 5.46 lakhs

Corporate Actions

Lapse of Warrants

The board noted the lapse of 1,36,00,000 warrants due to non-exercise of conversion options. This could potentially impact the company's capital structure and future fundraising plans.

Preference Shares Restructuring

The company is in the process of restructuring its preference shares. It has proposed the allotment of 2,35,50,530 Compulsory Convertible Preference Shares (CCPS) in lieu of 39,44,960 Non-Cumulative Non-Convertible Redeemable Preference Shares (RNCPS). This move is subject to regulatory approvals.

Auditor's Observations

The company's auditors, Chatterjee & Chatterjee, highlighted several points in their review report:

1. Certain immovable properties of the company, its subsidiaries, and associates have been provisionally attached by the Directorate of Enforcement under the Prevention of Money Laundering Act, 2002. However, the management states this does not impact business operations.

2. Trade payables, receivables, and other loans and advances are subject to reconciliation and confirmation.

3. One subsidiary has accumulated losses of Rs 5.46 lakhs, raising concerns about its ability to continue as a going concern.

The financial results paint a challenging picture for Newtime Infrastructure, with declining revenues and continued losses across its business segments. The company's management will need to address these challenges and work on improving operational efficiency in the coming quarters.