Real Touch Finance Invests Rs. 125 Crores in Security Receipts from Omkara Assets Reconstruction

Real Touch Finance Limited , a financial services company, has made a significant move in the stressed assets market by subscribing to Security Receipts worth Rs. 125.00 crores issued by Omkara Assets Reconstruction Private Limited. This strategic investment aims to support the acquisition and resolution of stressed financial assets under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Transaction Details

The company disclosed the following details about the transaction:

Aspect	Details
Purpose	To facilitate acquisition and resolution of stressed financial assets by the ARC
Nature of Transaction	Subscription to Security Receipts issued against financial assets to be acquired by Omkara Assets Reconstruction Private Limited
Related Party	No
Subscription Amount	Rs. 125.00 Crores

Implications and Context

This move by Real Touch Finance Limited signifies its participation in the stressed assets market, which has been gaining traction in India's financial landscape. By investing in Security Receipts, the company is indirectly participating in the process of resolving non-performing assets (NPAs) in the banking system.

The SARFAESI Act, under which this transaction is taking place, empowers banks and financial institutions to recover their bad debts without court intervention. Asset Reconstruction Companies (ARCs) like Omkara Assets Reconstruction play a crucial role in this process by acquiring stressed assets from banks and working towards their resolution.

Real Touch Finance's investment could potentially yield returns based on the successful resolution of the underlying stressed assets. However, it's important to note that returns on such investments are typically contingent on the recovery from the stressed assets, which can be subject to various market and economic factors.

The company has clarified that Omkara Assets Reconstruction is not a related party, ensuring transparency in the transaction and compliance with regulatory requirements.

This strategic move aligns with the broader trend in India's financial sector, where there's an increasing focus on resolving stressed assets to improve the overall health of the banking system. It also demonstrates Real Touch Finance's proactive approach in exploring opportunities within the evolving landscape of financial asset management.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-100.00%	+3.84%	-7.32%	+29.87%	-35.06%	+1,021.08%

Real Touch Finance Limited, a prominent player in the financial sector, has made significant announcements following its recent Board of Directors meeting. The company has approved its quarterly financial statements and revealed important changes in its auditing structure.

Q1 Financial Results Approved

The Board of Directors of Real Touch Finance Limited has approved the financial statements for the first quarter ended June 30. While specific financial figures were not disclosed, the approval of these statements marks an important milestone in the company's fiscal year.

Major Auditor Changes

In a significant move, Real Touch Finance announced the resignation of M/s P.D Randar & Co., Chartered Accountants (Firm No- 319295E), as the company's statutory auditor, effective July 30. To fill this vacancy, the Board has appointed M/s. G.S. Chugh & Associates, Chartered Accountants (FRN: 008884C), as the new statutory auditors for a period of three years, from FY 2025-2026 to FY 2027-2028, subject to shareholder approval.

M/s. G.S. Chugh & Associates, established in 1998, brings a wealth of experience to the role. The firm operates across 13 locations in India and offers a wide range of professional services, including audit and assurance, taxation, financial reporting, and management consultancy.

Appointment of Secretarial Auditor

In addition to the statutory auditor change, the Board has approved the appointment of M/s. S Satheesh Kumar & Associates as the company's secretarial auditor for a five-year term from FY 2025-2026 to FY 2029-2030, also subject to shareholder approval. This firm brings over 15 years of experience in various industries, specializing in secretarial audit, restructuring, valuation, and mergers & amalgamations.

40th Annual General Meeting

Real Touch Finance has scheduled its 40th Annual General Meeting (AGM) for September 25. In line with current trends, the meeting will be held virtually through Video Conferencing (VC) or Other Audio Visual Means (OAVM), adhering to guidelines issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India.

Board Reappointment

The Board has approved the reappointment of Mrs. Padmini Ceruseri Srikanth as a Non-executive non-independent director. Mrs. Srikanth, who is liable to retire by rotation, will be up for re-election at the upcoming AGM.

Corporate Governance

These announcements underscore Real Touch Finance's commitment to maintaining robust corporate governance practices. The changes in auditing structure and the upcoming AGM demonstrate the company's focus on transparency and shareholder engagement.

Investors and stakeholders will be keenly watching for the detailed financial results and any further strategic announcements that may emerge from the upcoming AGM.