TruCap Finance Limited has reported a decrease in shareholding by Wilson Holdings Private Limited, as disclosed in a regulatory filing. The transaction, which took place on June 20, 2023, involved the sale of 5,41,591 equity shares through the open market.

Impact on Shareholding

The sale has resulted in a reduction of Wilson Holdings' stake in TruCap Finance. Here's a breakdown of the changes:

Regulatory Compliance

This transaction was conducted as part of the regulatory disclosure requirements under SEBI takeover regulations. Such disclosures are crucial for maintaining transparency in the stock market and keeping investors informed about significant changes in shareholding patterns.

Implications

While the reduction in stake is relatively small, it's worth noting for investors and market watchers. Changes in substantial shareholdings can sometimes indicate shifts in company control or investment strategies of major stakeholders.

The move by Wilson Holdings to reduce its stake might be part of its portfolio management strategy. However, it's important to note that despite the sale, Wilson Holdings, along with Mrs. Minaxi Mehta, still retain a majority stake in TruCap Finance.

Investors and stakeholders of TruCap Finance should continue to monitor any further changes in shareholding patterns, as these can potentially impact the company's governance and strategic direction.

TruCap Finance Limited (TFL), formerly known as Dhanvarsha Finvest Limited, has faced a significant setback as Infomerics Ratings downgraded its credit rating to 'IVR D' from 'IVR C/Negative' for bank facilities totaling Rs 185.00 crore. This downgrade comes in the wake of TFL's default on principal repayments and interest payments across multiple lenders.

Default Details

The company defaulted on the following obligations:

The unlisted Non-Convertible Debenture (NCD) was issued to Incred Credit Opportunities Fund, out of a total NCD issuance of Rs 35.00 crore.

Financial Position

TruCap Finance's financial position appears precarious:

These figures underscore the significant refinancing risks and ongoing liquidity constraints faced by the company.

Rating Rationale

Infomerics Ratings cited the following reasons for the downgrade:

1. Default on repayment obligations across multiple lenders
2. Ongoing liquidity constraints
3. Elevated repayment obligations

The rating agency noted that TFL's ability to meet its debt obligations timely continues to depend on the availability of external funding support.

Path to Rating Upgrade

For a potential rating upgrade, Infomerics specified that TruCap Finance would need to demonstrate timely debt servicing for a minimum of 90 days.

Company Background

TruCap Finance Limited, an RBI-registered NBFC, has been in operation since 1994. The company underwent a management change in June 2017 when the Wilson Group took over. It's worth noting that the company changed its name from Dhanvarsha Finvest Limited to TruCap Finance Limited effective August 4, 2022.

Financial Performance

Recent financial data reveals challenges for TruCap Finance:

The significant loss in FY 2025 and the increase in NPAs indicate deteriorating financial health.

This credit rating downgrade and default event highlight the challenges facing TruCap Finance Limited. Investors and stakeholders will be closely watching the company's efforts to address its liquidity issues and meet its debt obligations in the coming months.