Banas Finance Limited Rights Issue: All You Need To Know

Banas Finance Limited is coming up with its rights issue in a few weeks. The last date to buy shares is Thursday, April 25, 2024. The record date of this new issue is Friday, April 26, 2024. The issue opens on Monday, May 13, 2024 and closes on Thursday, May 30, 2024. The issue size is 48,046,232 equity shares amounting to Rs 48.05 crores. The issue price is set at Rs 10 per share, and the face value is at Rs 10 per share. This issue will give eligibility to the existing shareholders to buy Banas Finance equity shares at discount price. Presently, Banas Finance's share price is Rs 17.27 per share. The eligible shareholders are being offered one Rights Equity shares for every one fully paid up equity shares held on a April 26, 2024, record date. The payment terms are decided as the full amount of Rs 10 per share is payable on application. Through this rights issue, the company plans to raise Rs 48.05 crores. The registrar of the issue is Purva Sharegistry India Private Limited. The lead managers for this issue are not yet announced.

About Banas Finance Limited

Banas Finance Limited was incorporated in 1983 and engaged in providing loans. In 1999, the Company applied to RBI for conversion into a NBFC and obtained the certificate from the central bank. Banas Finance, a NBFC, is in the business of purchasing, leasing, factoring, financing of hire purchase, lease of all kinds of vehicles etc. The company also finances computers and other equipment which it may find fit for financing. Banas Finance can execute all kinds of commercial and banking operations (except banking and insurance business) which may seem to be being conveniently carried on and can give loans for short term and long term periods. 

Objectives of Banas Finance Right Issue

The main objective of this issue is to raise funds from the existing shareholders. The funds will be used to meet the working capital requirements. Also to provide short-term and long-term loans. Other than this general corporate purposes and issue related expenses will also be met.

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Financials Details of Banas Finance (Amt in Rs Crores)

Banas Finance posted a revenue of Rs 20.88 crore but a net loss of -54.76 crore for the period ending 31 March 2023. The company’s revenue decreased by -79.29% and PAT declined by -178.95 between the financial year ending on 31st March 2023 and 31st March 2022.