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 shares | 25 April 2024 |
| Record Date | 26 April 2024 |
| Credit of Rights Entitlements | 06 May 2024 |
| Bid/Offer Opens On | 13 May 2024 |
| Renunciation of Rights Entitlements | 17 May 2024 |
| Bid/Offer Closes On | 30 May 2024 |
| Deemed Date of Allotment | 11 June 2024 |
| Credit Date | 13 June 2024 |
| Listing Date | 14 June 2024 |
Banas Finance Rights Issue Details
| Issue Open | May 13, 2024 – May 30, 2024 |
| Security Name | Banas 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 At | BSE |
| Terms of Payment | The Issue Price of Rs. 10/- per Rights Equity Share shall be payable at the time of application. |
| Entitlement | 1 Rights Equity Share(s) for every 1 fully paid-up Equity Shares held on Record Date |
Company Financials
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 14.47 | 100.95 | 20.88 |
| Expenses | 4.92 | 9.31 | 120.57 |
| Net income | 11.22 | 69.37 | (54.76) |
| Margin (%) | 77.54 | 68.72 | (262.26) |
Rights Issue Documents
Lead Manager(s)
Rights Issue Registrar
PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED
Unit No. 9, Ground Floor, Shiv Shakti Industrial Estate,
J. R. Boricha Marg, Lower Parel (East), Mumbai – 400011
Phone: 91-22-49614132/ 022- 352200566761
Email: newissue@purvashare.com
Website: www.purvashare.com
Company Contact Information
BANAS FINANCE LIMITED
E-109, Crystal Plaza, New Link Road,
Opp. Infinity Mall, Andheri (W) – 400 053
Phone: +9152096140/41
Email: banasfin@gmail.com
Website: www.banasfinance.wordpress.com
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
