Purple Finance Rights Issue will open for subscription from 04 October 2024. the company aims for an issue size of ₹44.82 Crores through this rights Issue.
About the company
Purple Finance took a bold step into retail MSME-secured lending, focusing on entrepreneurs in tier II, III, and IV cities. Catering to micro and small businesses, they provide loans ranging from INR 3 lakh to INR 30 lakh. With 25 branches already established, Purple Finance has positively impacted over 2,000 lives, leveraging cutting-edge technology to offer affordable, timely, and sufficient credit.
As of August 2024, Purple Finance has 109 Relationship Managers stationed in branch offices and 422 external DSAs/Connectors serving as key touchpoints. The company primarily operates in semi-urban areas and Tier III and Tier IV cities. Since its launch, PFL has extended loans totaling INR 45 crore to nearly 800 clients. Each loan is backed by either self-occupied residential or commercial properties. Leveraging cutting-edge technology, PFL ensures seamless lending experiences for its customers. As of now, the company employs approximately 216 people. By 30 June 2024, out of 750 borrowers, only one case has been classified as a Non-Performing Asset (NPA), amounting to INR 6.41 lakhs.
Objectives of the Issue
- Augmenting the capital base; and
- General corporate purposes.
Purple Finance Rights Issue Timetable
| Rights Issue Approval Date | 20 September 2024 |
| Rights Issue Record Date | 26 September 2024 |
| Credit of Rights Entitlement | 1 October 2024 |
| Rights Issue Opening Date | 4 October 2024 |
| Last Date for Market Renunciation | 8 October 2024 |
| Rights Issue Closing Date | 11 October 2024 |
| Finalization of Basis of Allotment | 17 October 2024 |
| Rights Allotment Date | 18 October 2024 |
| Credit Date | 22 October 2024 |
| Listing Date | 23 October 2024 |
Purple Finance Rights Issue Details
| Issue Open | October 4, 2024 – October 11, 2024 |
| Security Name | Purple Finance Ltd |
| Issue Size (Shares) | 11,204,985 |
| Issue Size (Amount) | ₹44.82 Crores |
| Issue Price | ₹40 per share |
| Face Value | ₹10 per share |
| Listing At | BSE |
| Terms of Payment | All money payable at the time of Application |
| Entitlement | 1 Rights Equity Share(s) for every 3 fully paid-up Equity Shares held on Record Date |
Purple Finance Rights Issue Calculation
| Purple Finance Rights Issue Price | ₹ 40 per share |
| Market Price on Rights Issue Approval | ₹ 85.69 per share |
| Dilution Factor (X) | 1.33 |
| Fair Value After Dilution at Prevailing Price | ₹ 74.27 per share |
Company Financials
| FY 2023 | FY 2024 | |
| Revenue | 2.56 | 4.44 |
| Expenses | 7.97 | 15.47 |
| OPM (%) | (211.33) | (248.42) |
| Net income | (6.33) | (7.61) |
| ROCE (%) | – | (26.52) |
Rights Issue Documents
Purple Finance Rights Issue Lead Manager(s)
MARK CORPORATE ADVISORS PRIVATE LIMITED
404/1, The Summit Business Bay, Sant Janabai Road (Service Lane),
Off W. E. Highway, Vile Parle (East), Mumbai-400 057. Maharashtra
Phone: +91 22 2612 3207 / 22 2612 3208
Email: rightsissue@markcorporateadvisors.com
Website: www.markcorporateadvisors.com
Purple Finance Registrar
PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED
9, Shiv Shakti Industrial Estate, J.R. Boricha Marg, Lower
Parel (East) Mumbai-400011, Maharashtra India
Phone: +91 022 4961 4132/ 31998810 / 4970 0138
Email: support@purvashare.com
Website: www.purvashare.com
Company Contact Information
PURPLE FINANCE LIMITED
705/706, 7th Floor, Hallmark Business Plaza,
Opposite Gurunanak Hospital, Bandra East, Mumbai – 400 051
Phone: 022-69165100
E-mail: compliance@purplefinance.in
Website: www.purplefinance.in
Final Thoughts
Applying for the rights issue is purely a personal choice. Make sure you conduct a detailed study of the company and its rights issues before you make an investment decision.
Happy investing
