Savani Financials Limited (formerly known as Mantra Capital Limited) has reported a significant net loss and announced plans to raise funds through non-convertible debentures, according to the company's latest financial results and board meeting outcome.

Financial Performance

For the quarter ended September 30, Savani Financials reported:

The company's net loss widened compared to the previous quarter's loss of Rs 258.16 crore. Employee benefit expenses constituted the largest expense category for the company during this period.

Fundraising Plans

Savani Financials' Board of Directors has approved raising funds through the issuance of Non-Convertible Debentures (NCDs). Key details of the proposed NCD issue include:

• Maximum amount: Up to Rs 15 crore
• Issuance method: Private placement, public issue, qualified institutional placement, or other permissible methods
• Listing status: Not listed
• Tranches: To be issued in one or more tranches

The company stated that the tenure, coupon rate, and other specifics of the NCDs will be determined by the Board or a committee authorized by the Board at the time of issuance.

Company Operations

Savani Financials operates as a Non-Banking Financial Company (NBFC) registered under the Reserve Bank of India Act, 1934. The company's primary focus is on financial services, including loans, investments, and commission income.

Additional Disclosures

The company also reported that there has been no deviation in the use of proceeds from the objects stated in its Letter of Offer for the Rights Issue dated April 10, as per the statement filed under Regulation 32 of SEBI Listing Obligations and Disclosure Requirements.

Savani Financials' Board meeting, which approved these results and decisions, commenced at 10:30 A.M. and concluded at 4:30 P.M. on November 12.

As the company navigates through these financial challenges and fundraising initiatives, stakeholders will be closely watching how these strategies impact its future performance and market position in the NBFC sector.

Savani Financials Limited held its 41st Annual General Meeting (AGM) on September 25, where shareholders approved several significant resolutions that could shape the company's future growth and operations.

Key Approvals

Financial and Capital Structure Changes

• Borrowing Limit: Shareholders approved an increase in the company's borrowing limit to Rs 500.00 crore, potentially enhancing Savani Financials' ability to fund its operations and expansion plans.
• Authorized Capital Increase: The authorized share capital was raised to Rs 100.00 crore, divided into 9.75 crore equity shares and 25 lakh redeemable preference shares, both with a face value of Rs 10.00 each.

Employee Stock Option Scheme

The company received approval for the 'Savani Financials Employee Stock Option Scheme 2024' (ESOS 2024), which includes:

• Granting stock options to eligible employees of the company and its subsidiaries.
• Allowing grants equal to or exceeding 1% of the issued capital to identified employees.

Corporate Governance and Structure

• Related Party Transactions: Material related party transactions for the financial year 2025-2026 were approved.
• Company Name Change: Shareholders agreed to a change in the company's name, with consequent amendments to the Memorandum and Articles of Association.
• New Articles of Association: A new set of Articles of Association was adopted.

Additional Corporate Actions

• Secretarial Auditor Appointment: M/s. Bansal and Company, Company Secretaries, were appointed as the Secretarial Auditor for a five-year term.
• Director Reappointment: Ms. Deepa Kishor Tracy, Managing Director, was reappointed after retiring by rotation.

Management Remuneration

Several resolutions related to management compensation were passed:

• Approval of managerial remuneration for the Managing Director.
• Framework for compensation to the Managing Director and Chief Executive Officer.
• Remuneration framework for Non-Executive Independent Directors.

Shareholder Participation

The AGM, conducted through video conferencing due to ongoing regulatory guidelines, saw participation from 50 shareholders, including 2 from the promoter and promoter group and 48 from the public.

Conclusion

The approved resolutions at Savani Financials' 41st AGM reflect the company's focus on financial flexibility, employee retention, and corporate restructuring. These changes could potentially position the company for future growth and operational efficiency in the dynamic financial services sector.

Investors and stakeholders will likely watch closely how these approved measures translate into the company's performance and market position in the coming fiscal year.