A.K. Capital Services Limited has announced a significant investment decision, with its Banking and Investment Committee approving a ₹75 crore capital infusion into subsidiary A.K. Capital Finance Limited through subscription of Compulsorily Convertible Preference Shares.

Investment Details and Structure

The investment, approved on March 10, 2026, involves the subscription of 75,00,000 Non-Cumulative Compulsorily Convertible Preference Shares (CCPS) with a face value of ₹100 each. The transaction will be executed through cash consideration and may be completed in one or more tranches.

Subsidiary Financial Performance

A.K. Capital Finance Limited, the target entity, demonstrates strong financial fundamentals across key metrics. The subsidiary operates as a Systemically Important Non Deposit Accepting Middle Layer Non-Banking Financial Company (NBFC-ND-SI) registered with the Reserve Bank of India.

Business Background and Operations

A.K. Capital Finance Limited, incorporated on February 03, 2006, operates under a hybrid business model generating revenue through multiple streams including interest income from loan portfolios, fees income, and treasury income from investment activities. The company is categorized as an Investment and Credit Company (NBFC-ICC) and maintains operations exclusively within India.

The subsidiary's revenue performance over the past three years demonstrates consistent growth:

• FY 2024-25: ₹333.83 crore
• FY 2023-24: ₹310.09 crore
• FY 2022-23: ₹249.89 crore

Shareholding Impact and Related Party Considerations

Currently, A.K. Capital Services Limited holds 95.12% of the total paid-up equity share capital and 75% of the paid-up preference share capital of A.K. Capital Finance Limited. Upon conversion of the CCPS into equity shares according to the terms specified, the parent company's holding will adjust to 93.38% of the paid-up equity share capital.

The transaction qualifies as a related party transaction conducted on an arm's length basis, supported by an independent valuation report from a registered valuer. Key stakeholders Mr. A.K. Mittal (Managing Director and Promoter) and Ms. Aditi Mittal (Non-Executive Director and Promoter Group member) have interests corresponding to their shareholding in the subsidiary.

Strategic Objectives

The capital infusion serves multiple strategic purposes for A.K. Capital Finance Limited. The funding will address general business requirements while supporting expansion of business operations and activities. The investment aims to strengthen the subsidiary's liquidity position, enabling enhanced operational capacity and growth initiatives within the NBFC sector.

A.K. Capital Services Limited's promoter group has strengthened its position in the company through systematic open market acquisitions, increasing their collective shareholding from 71.50% to 72.14% as of March 5, 2026. The disclosure was submitted to BSE Limited in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Shareholding Enhancement Details

The promoter group, led by A.K. Mittal (Promoter and Managing Director), acquired a total of 1,32,367 shares through open market transactions conducted between June 2025 and March 2026. The acquisitions were executed systematically across multiple trading sessions, demonstrating sustained confidence in the company's prospects.

Current Shareholding Structure

Following the recent acquisitions, the promoter group's shareholding composition reflects a consolidated ownership structure. Family Home Consultancy Services Private Limited continues to hold the largest individual stake within the group at 49.39%, while A.K. Mittal's personal holding has increased to 17.62%.

Transaction Timeline and Methodology

A.K. Mittal's acquisition strategy involved regular open market purchases spanning from November 2025 to March 2026, with the most significant activity occurring in November 2025. The largest single-day acquisition was 13,250 shares on November 21, 2025. Aditi Mittal's acquisitions were concentrated in June and September 2025, with the largest purchase of 9,730 shares on June 26, 2025.

Regulatory Compliance and Corporate Changes

The disclosure highlights several reclassifications within the promoter group structure. Sanjiv Kumar, Kavita Garg, and Sanjeev Kumar HUF were reclassified from 'Promoter Group' to 'Public' category in July 2025. Similarly, Dinesh Kumar Gupta and Abhinav Kumar Mittal were reclassified to public shareholders in December 2025 and January 2026 respectively, following BSE Limited's no-objection letters.

Company Capital Structure

A.K. Capital Services Limited maintains a stable capital structure with 66,00,000 equity shares of INR 10 each, representing a total paid-up share capital of INR 6,60,00,000. The company's shares are listed on BSE Limited under scrip code 530499, and the recent promoter acquisitions have been executed without any changes to the overall share capital structure.