SMIFS Capital Markets Limited, now known as Nexome Capital Markets Limited, has received a significant approval from the BSE Limited (BSE) regarding the reclassification of certain individuals and entities from the "Promoter/Promoter Group" category to the "Public" category of shareholders.

BSE Approval Details

The company announced that it had received a no-objection letter from BSE dated September 17, 2025. This approval comes in response to Nexome Capital's application submitted on June 04, 2025, seeking reclassification under Regulation 31A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations).

Entities Approved for Reclassification

The BSE has granted approval for the reclassification of the following eight individuals and entities:

1. Ajay Kumar Kayan
2. Lalita Kayan
3. Rahul Kayan
4. Payal Saraf
5. Suman Bhartia
6. Ajay Kumar Kayan HUF
7. Gauri Shankar Ajay Kumar HUF
8. Mackertich Consultancy Services Private Limited

Next Steps

While this approval from BSE marks a significant milestone, the reclassification process is not yet complete. Nexome Capital Markets Limited will now proceed with the following steps:

1. Convene a shareholders' meeting to seek necessary approvals as required under Regulation 31A of SEBI LODR Regulations.
2. Take all necessary steps to comply with the requirements set forth in the regulations.
3. Ensure compliance with subsequent relevant disclosures of material events related to this reclassification, in accordance with the applicable provisions of Regulation 31A of SEBI (LODR) Regulations, 2015.

Implications

This reclassification, once fully approved, could potentially impact the shareholding structure of Nexome Capital Markets Limited. It may also affect various regulatory requirements and disclosures that the company needs to make, as the individuals and entities involved will move from the Promoter category to the Public category.

Investors and stakeholders of Nexome Capital Markets Limited should keep an eye on further announcements regarding the shareholders' meeting and the final approval of this reclassification.

The company has stated that it will upload this information on its official website ( www.nexomecap.com ) for the information and compliance of all concerned parties.

SMIFS Capital Markets Limited, now known as Nexome Capital Markets Limited, has reported a mixed set of financial results for the first quarter ended June 30, while also announcing plans for a rights issue and geographical expansion.

Financial Performance

The company reported a consolidated net profit of ₹126.75 lakh for Q1, compared to ₹36.18 lakh in the same quarter last year, marking a significant year-on-year increase. However, the firm faced substantial other comprehensive losses, primarily due to fair valuation losses on its investment portfolio.

On a standalone basis, Nexome Capital Markets posted a net profit of ₹127.95 lakh for the quarter. The company's total income stood at ₹1,748.93 crore on a consolidated basis, down from ₹1,767.10 crore in the same period last year.

Segment-wise Performance

The company's financial results reveal strong performance in its Investment Banking Operations, which contributed ₹1,453.92 crore to the total revenue. The Capital Market Operations segment generated ₹216.02 crore in revenue for the quarter.

Rights Issue and Expansion Plans

In a significant move, Nexome Capital Markets' Board of Directors has given in-principle consent for raising funds through a rights issue to existing equity shareholders. The company has constituted a Rights Issue Committee comprising four directors to oversee various aspects of the issue, including its size, record date, rights entitlement ratio, and pricing.

Additionally, the company has approved the opening of a new branch office in Mumbai, effective September 1. This strategic expansion is expected to facilitate the growth of Nexome's business operations.

Auditor's Observations

The company's auditors have highlighted that Nexome Capital Markets recognized expected credit losses on loans extended to a party and fair valuation losses on investments based on valuation reports. While necessary provisions have been made in accordance with accounting practices, the company remains committed to recovering the outstanding loan amount.

Looking Ahead

As Nexome Capital Markets navigates through a challenging investment landscape, the company's focus on expanding its geographical presence and strengthening its capital base through the proposed rights issue could potentially position it for future growth. However, the significant fair valuation losses on its investment portfolio underscore the volatile nature of the markets in which it operates.

Investors and market watchers will likely keep a close eye on the upcoming rights issue details and the impact of the Mumbai expansion on the company's future performance.