Delphi World Money Limited has released its unaudited financial results for the second quarter and first half of the fiscal year 2025, revealing a significant decline in profitability amidst ongoing regulatory challenges.

Q2 and H1 FY25 Financial Highlights

For the quarter ended September 30, 2024, Delphi World Money reported:

For the six-month period:

Regulatory Challenges

The company is facing substantial regulatory hurdles:

1. FEMA Violations: The Enforcement Directorate has imposed monetary penalties of ₹329.07 crore for violations of the Foreign Exchange Management Act (FEMA) related to the pre-acquisition period.

2. GST Demands: The company is contending with GST demands totaling ₹456.98 crore, plus additional penalties.

Delphi World Money has appealed these orders and maintains that indemnities from erstwhile promoters will cover any potential liabilities arising from these regulatory actions.

Inter-corporate Deposits

The company reported inter-corporate deposits to group companies amounting to ₹1,852.53 crore. Despite some borrower companies having negative net worth, management expressed confidence in the collectability of these deposits.

Management's Stance

While the financial results show a marked decrease in profitability, Delphi World Money's management appears to be taking a proactive approach to address the regulatory challenges. The company's appeal against the regulatory orders and its reliance on indemnities from former promoters suggest a strategy to mitigate potential financial impacts.

The significant drop in net profit for both the quarter and half-year periods underscores the pressing challenges facing the company. Investors and stakeholders will likely be closely monitoring how Delphi World Money navigates these regulatory issues and manages its financial position in the coming quarters.

Delphi World Money Limited , a prominent player in the foreign exchange and remittance sector, has announced a significant move to bolster its financial position. The company's Board of Directors has given the green light for a rights issue aimed at raising up to Rs. 100.00 crores through the issuance of fully paid-up equity shares.

Rights Issue Details

The rights issue will involve offering new equity shares with a face value of Rs. 10.00 each to existing shareholders. This strategic decision was made during a board meeting held on August 28, 2025, at the company's registered office. The move is designed to strengthen the company's capital base and support its growth initiatives.

Key Developments

Rights Issue Committee

The board has constituted a dedicated Rights Issue Committee. This committee will be responsible for determining crucial aspects of the issue, including:

• Quantum of the issue
• Rights entitlement ratio
• Issue price (including any premium)
• Issue size
• Record date
• Timing of the issue

Monitoring Agency

CARE Ratings Limited, a SEBI-registered agency, has been appointed as the Monitoring Agency for the proposed rights issue. Their role will be to oversee the utilization of the funds raised, ensuring compliance with Regulation 82 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Regulatory Compliance

The rights issue will be conducted in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and relevant SEBI circulars.

Next Steps

The company will now seek in-principle approval from the stock exchanges by filing a Draft Letter of Offer. The exact number of securities to be issued will be determined after receiving this approval. Delphi World Money Limited will also obtain necessary regulatory and statutory approvals as required under applicable laws.

The rights issue represents an opportunity for existing shareholders to increase their stake in the company. It also demonstrates the company's commitment to growth and its confidence in future prospects.