Rajath Finance Limited (RFL) has made several significant announcements following its recent board meeting, including the approval of a rights issue and multiple changes to its board and key positions.

Rights Issue Approval

The board of Rajath Finance Limited has greenlit a 1:4 rights issue of equity shares to existing shareholders. This move is set to raise approximately Rs. 16.00 crore through the issuance of 1.60 crore equity shares with a face value of Rs. 10 each on a partly paid-up basis.

Board and Management Changes

New Appointments

RFL has made several key appointments:

• Ashok Kumar Nag: Appointed as an additional non-executive independent director
• Anil Bhutra & Co: Named as the internal auditor for the fiscal year 2024-25
• N.C. Vaishnav & Co: Appointed as statutory auditors
• Samir Gajjar & Co: Designated as the valuer for the rights issue
• Vivro Financial Services Private Limited: Engaged as the merchant banker

Resignations

The company also announced the departures of:

• Prakash Shah and Jayna Shah: Resigned from their positions as independent directors
• A.D. Vyas & Co: Stepped down as statutory auditors

Other Key Decisions

1. The board has authorized the subscription of shares in Lord Krishna Financial Services Limited.
2. Approval of the annual report for the year ended March 31, 2024.
3. Arrangements for the upcoming Annual General Meeting for FY 2023-2024 have been finalized.

Financial Results

Rajath Finance Limited's board has approved the unaudited quarterly financial results for the quarter ended June 30, 2024. However, specific details of these results were not provided in the announcement.

These developments signal significant changes in Rajath Finance Limited's corporate structure and strategy, potentially impacting its future operations and shareholder value. Investors and stakeholders are advised to keep a close watch on further announcements from the company regarding the implementation of these decisions.

Rajath Finance has announced significant changes in its leadership and approved several important transactions, as per the company's latest disclosure to the Bombay Stock Exchange (BSE).

New Leadership Appointment

The Board of Directors of Rajath Finance, in its meeting held on August 26, 2025, approved the appointment of Mr. Shanker Raman Siddhanathan (DIN: 11092783) as an Additional Director and Managing Director of the company. Mr. Siddhanathan's appointment is effective from August 23, 2025, for a term of five consecutive years, subject to shareholder approval at the upcoming 40th Annual General Meeting (AGM).

Professional Background

Mr. Siddhanathan, aged 47, brings over 25 years of experience as a finance professional to Rajath Finance. His expertise spans operational leadership, managing lending operations, and heading customer excellence initiatives. Prior to joining Rajath Finance, he held positions at prominent financial institutions including Adani Capital Private Limited, Lendingkart Finance Limited, U Gro Capital Private Limited, and Religare Finvest Limited. Mr. Siddhanathan holds an MBA in Banking & Finance.

Key Approvals and Transactions

The board meeting also resulted in several other significant decisions:

1. Approval of related party transactions with multiple directors, including:

   • Independent Directors: Mr. Ashok Kumar Nag, Mr. Sarat Kumar Malik, Mrs. Vijaya Gupta, and Mrs. Anjali Sharma
   • Non-Executive Director: Mr. Ashok Kumar Mittal
   • Key Management Personnel: Mr. Akash Bhedda (Company Secretary) and Mrs. Preeti Mhatre (CFO)

2. Approval of remuneration for Mr. Ashok Kumar Mittal (Non-Executive Director) and Mr. Shanker Raman Siddhanathan (Managing Director)

3. Increase in the company's borrowing limit

4. Approval of a related party transaction with Lord Krishna Financial Services Limited

5. Approval of the Board of Directors' report and its annexures for the year ended March 31, 2025

Preparations for the Annual General Meeting

The board has also taken steps to prepare for the upcoming AGM:

• Fixed the day, date, time, and venue for the 40th AGM
• Approved the draft notice of the AGM-2025 for publication in newspapers
• Appointed M/s. PHD & Associates as scrutinizer for e-voting results and voting through poll at the AGM

These developments signal Rajath Finance's focus on strengthening its leadership, ensuring regulatory compliance, and preparing for shareholder engagement through the upcoming AGM. The appointment of Mr. Siddhanathan as Managing Director, with his extensive experience in the financial sector, may indicate the company's intentions to enhance its operational capabilities and strategic direction in the coming years.