Purple Finance Limited, a Mumbai-based financial services company, has taken steps towards bolstering its capital base. The company's Board of Directors has approved a postal ballot notice for two key proposals: increasing the authorized share capital and issuing equity share warrants on a preferential basis.

Authorized Share Capital Increase

The company plans to increase its authorized share capital from Rs. 60.00 crores to Rs. 70.00 crores by creating an additional 1 crore equity shares of Rs. 10.00 face value each.

Key Details of the Warrant Issue

Terms and Conditions

The warrants, once issued, will be convertible into an equivalent number of equity shares. The board has approved issuing these warrants to Intellect Money Finvest Private Limited.

Regulatory Process

The board meeting for these approvals was held on October 28, 2025. The company will inform exchanges about the dispatch of notice and e-voting details to shareholders for the postal ballot.

Market Implications

The issuance of these warrants and the increase in authorized share capital indicate Purple Finance's intent to strengthen its financial position. The potential infusion of fresh capital, upon conversion of the warrants, could provide the company with additional resources.

Conclusion

As Purple Finance moves forward with these proposals, the potential capital raise and share capital increase may impact the company's financial position.

Note: The implementation of these proposals is subject to shareholder approval through the postal ballot process.

Purple Finance Limited, a fast-growing NBFC serving MSMEs through LAP products, has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, along with considering requests for promoter group reclassification.

Financial Performance Highlights

Purple Finance demonstrated robust growth in the second quarter of FY26, with significant improvements across key financial metrics:

The company's Assets Under Management (AUM) reached ₹163 crore by the end of September 2025, marking an impressive 209% growth over the past year while maintaining a Gross NPA ratio below 1%.

Operational Expansion

Purple Finance has been actively expanding its reach:

• Number of branches increased to 43, up 16% from the previous quarter and 95% year-on-year
• Employee count grew to over 400, an increase from the previous quarter and a significant rise compared to the previous year

Future Outlook

The company aims to reach an AUM of ₹250 crores by the end of the current financial year, supported by deeper market penetration through its expanded network across key MSME clusters.

Board Meeting Outcomes

In a board meeting held on October 17, 2025, from 03:45 p.m. to 05:15 p.m., Purple Finance's directors:

1. Approved the unaudited financial results for Q2 and H1 FY26, which were reviewed by Jogin Raval & Associates, Chartered Accountants.

2. Considered requests from two Promoter Group shareholders for reclassification to the Public category:

   • Mr. Ranjana Pathak, holding 41,72,362 shares (7.67%)
   • Mr. Satyaprakash Pathak, holding 11,46,735 shares (2.11%)

Management Commentary

Mr. Amitabh Chaturvedi, commenting on the results, stated, "Our performance in Q2 demonstrates the scalability and resilience of our business model. We are committed to expanding our reach and achieving profitability while maintaining a quality portfolio."

Purple Finance continues to leverage technology and deep industry expertise to drive responsible growth in the MSME-focused lending sector. The company remains focused on serving micro and small enterprises with secured business loans.