Supra Pacific Financial Services Limited , a non-banking financial company (NBFC), has successfully completed the allotment of secured Non-convertible Debentures (NCDs) worth Rs 11 crore. The company's Board of Directors, during a meeting held on December 11, approved and allotted these secured, unrated, unlisted NCDs under a category with minimum subscription of more than Rs 1 crore per investor.

Recent Board Meeting Outcomes

The Board meeting, which commenced at 10:30 AM and concluded at 11:00 AM on December 11, addressed several key agenda items. The directors reviewed the minutes of previous Board and Committee meetings and conducted a comprehensive review of the company's business operations and prospects.

Enhanced NCD Issuance Strategy

This latest allotment represents an increase from the previously approved Rs 10 crore NCD issuance that was sanctioned in November. The company has now moved to a higher subscription category, targeting investors with minimum investments exceeding Rs 1 crore, which may indicate a shift toward institutional or high-net-worth individual investors.

Strong Financial Foundation

The NCD allotment comes against the backdrop of Supra Pacific's robust financial performance. The company's balance sheet demonstrates substantial growth across key metrics:

The company's total assets have nearly doubled with an impressive 83.97% year-over-year growth, while maintaining healthy increases across current assets, fixed assets, and equity positions.

Strategic Funding Diversification

The successful completion of the NCD allotment provides Supra Pacific with additional capital to support its expansion strategy. The move to target larger ticket-size investors through the minimum Rs 1 crore subscription threshold suggests a strategic approach to accessing institutional funding sources. This diversification of funding sources could potentially help optimize the company's cost of capital while supporting its continued growth trajectory.

The completion of this NCD issuance, combined with the company's strong asset growth, positions Supra Pacific Financial Services to capitalize on emerging opportunities in the NBFC sector while maintaining its expansion momentum.

Supra Pacific Financial Services Limited has announced the withdrawal of its In-Principle Approval Application from the Bombay Stock Exchange (BSE) and the cancellation of its proposed preferential issue of equity shares. This decision comes in the wake of regulatory observations and BSE queries that highlighted the non-permissibility of issuing equity shares against non-cash consideration for immovable property acquisition under the current SEBI ICDR (Issue of Capital and Disclosure Requirements) framework.

Key Details of the Withdrawn Application

The company had initially planned two preferential issues:

Reasons for Withdrawal

The Board of Directors, in a meeting held on November 21, considered several factors before deciding to withdraw the application:

1. Queries raised by BSE Limited in Case No. 243437 dated August 20.
2. Regulatory observations received regarding the proposed preferential issue.
3. Professional opinion on the permissibility of issuing equity shares for non-cash consideration under SEBI regulations.

Regulatory Non-Compliance

After reviewing Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Board concluded that:

• Issuing equity shares on a preferential basis against non-cash consideration for acquiring immovable property is not permissible under the current SEBI ICDR framework.
• The proposed preferential issues no longer align with the applicable regulatory framework and the previously approved objectives.

Future Plans

The company has stated that any future fund-raising proposals will be considered afresh in compliance with applicable laws and presented to the Board separately with appropriate justification.

Corporate Action Timeline

The Managing Director, Joby George, has been authorized to submit the necessary withdrawal communication to BSE Limited and complete all related formalities.

This development underscores the importance of regulatory compliance in corporate actions and highlights the scrutiny that preferential share issues face, especially when involving non-cash considerations.