Banas Finance Rights Issue

Banas Finance Rights Issue will open for subscription from 13 May 2024. the company aims for an issue size of ₹48.05 Crores through this rights Issue.

About the company

Founded in 1983, Banas Finance is a Non-Banking Finance Company (NBFC) specializing in the business of purchasing, leasing, factoring, and financing hire-purchase agreements. Its services cover leasing of all types of equipment, including plants and machinery, motor vehicles, motor boats, trawlers, launches, ships, vessels, helicopters, aircraft, automobiles, computers, and other equipment.

The company offers financing to support business activities as investors and dealers in shares, stocks, and securities. It serves as a capitalist, financier, and concessionaire and engages in various financial, commercial, and trading operations (excluding banking and insurance business).In FY 2023, the company swung to a loss of INR 54.76 crore, compared to a profit after tax of INR 69.37 crore in the preceding fiscal year.

Objectives of the Issue

1. Towards working capital requirements including:

  • Short Term and Long Term Unsecured/Secured Loans & Advances to Corporate and Non-Corporate Customers;
  • Investment and dealing in Shares & Securities, Mutual Funds, Debt Funds, Liquid Funds, G-sec, Fixed Deposits, Commodity Markets and Currency Markets.

2. General corporate purpose; and

3. To meet Issue related expenses.

Banas Finance Rights Issue Timetable

Last Date to buy shares25 April 2024
Record Date26 April 2024
Credit of Rights Entitlements06 May 2024
Bid/Offer Opens On13 May 2024
Renunciation of Rights Entitlements17 May 2024
Bid/Offer Closes On30 May 2024
Deemed Date of Allotment11 June 2024
Credit Date13 June 2024
Listing Date14 June 2024

Banas Finance Rights Issue Details

Issue OpenMay 13, 2024 – May 30, 2024
Security NameBanas Finance Ltd.
Issue Size (Shares)48,046,232
Issue Size (Amount)₹48.05 Crores
Issue Price₹10 per share
Face Value₹10 per share
Listing AtBSE
Terms of PaymentThe Issue Price of Rs. 10/- per Rights Equity Share shall be payable at the time of application.
Entitlement1 Rights Equity Share(s) for every 1 fully paid-up Equity Shares held on Record Date

Company Financials

 FY 2021FY 2022FY 2023
Net income11.2269.37(54.76)
Margin (%)77.5468.72(262.26)
(Amount in ₹ Crore)

Rights Issue Documents

Lead Manager(s)

Rights Issue Registrar

Unit No. 9, Ground Floor, Shiv Shakti Industrial Estate,
J. R. Boricha Marg, Lower Parel (East), Mumbai – 400011
Phone: 91-22-49614132/ 022- 352200566761

Company Contact Information

E-109, Crystal Plaza, New Link Road,
Opp. Infinity Mall, Andheri (W) – 400 053
Phone: +9152096140/41

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

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