1:2 Stock Split Ahead: NBFC Stock To Raise Funds Upto Rs.200 Cr Via QIP Route

The micro-cap NBFC Srestha Finvest said that its Board of Directors has given the go-ahead to raise up to Rs 200 Cr through the QIP route. After the aforementioned news, the penny stock below Rs. 5 at its current price of Rs. 2.20 is probably going to be in the spotlight more than ever in addition to increasing its authorised share capital.

The Board of Directors considered and approved, "Increase in the Authorised Share Capital of the company from existing Rs. 1,67,00,00,000/- (Rupees One Hundred and Sixty Seven Crores Only) divided into 1,67,00,00,000 (One Hundred and Sixty Seven Crores) Equity Shares of Re.1/- (Rupee One Only) each* to Rs. 3,67,00,00,000/- (Rupees Three Hundred and Sixty Seven Crores Only) Equity Shares of Re.1/- each (Rupees One Only) each and corresponding amendments to the Clause V of the Memorandum of Association of the Company, subject to approval of members. The Company has initiated the process of Postal Ballot to split the face value of Rs.2/- each into Re.1/- each. The Postal Ballot process will conclude on September 05, 2024 and assuming members approval, the face value of the existing authorised capital is shown as Re.1/- each Only," said Srestha Finvest in a stock exchange filing on Monday.

The Board also gave nod to "Raising of funds by way of issuance of such number of equity shares having face value of Re.1/- each (Rupee One Only) of the Company, for an aggregate amount not exceeding Rs.200 Crores (Rupees Two Hundreds Crores only) by way of Qualified Institutional Placement ("QIP") in accordance with the applicable laws, subject to the receipt of the necessary approvals including the approval of the members of the Company and other regulatory / statutory approvals, as may be required," the company further informed stock exchanges.

Regarding the financials, Srestha Finvest announced a surge in net profit of Rs 31.01 crore for the quarter ending in June 2024, compared to Rs 0.44 crore for the same quarter in 2023, a rise of 6947.73%. Revenue surged 1632.46% from Rs 2.28 crore in Q1FY24 to Rs 39.50 crore in Q1FY25. The plan for sub-division, which calls for a 2:1 share split, was recently disclosed by the corporation. The record date for the same will be announced in due course.