Crescentis Capital earmarks ₹63.3 crore for NBFC growth

Crescentis Capital Limited plans to deploy ₹63.3 crore from its rights issue to expand its non-banking financial company activities in FY 2026-27, representing 80.2% of projected net proceeds of ₹78.92 crore. The company has also earmarked ₹15 crore for repayment or prepayment of revolving loan-against-securities facilities.

How will Crescentis Capital use the rights issue proceeds?

Crescentis Capital intends to raise gross proceeds of ₹79.62 crore through an offer of up to 1,02,08,129 equity shares at ₹78 each, according to its Letter of Offer. After estimated issue-related expenses of ₹70 lakh, the company expects net proceeds of ₹78.92 crore, all of which it proposes to deploy in FY 2026-27 assuming full subscription.

The largest allocation is ₹63.3 crore to augment capital and increase the operating scale of its NBFC activities. This is 79.5% of gross proceeds and 80.2% of net proceeds. Crescentis Capital has assigned ₹15 crore, or 19.0% of net proceeds, to debt repayment or prepayment, while ₹62.34 lakh is assigned to general corporate purposes.

Crescentis Capital said any reduction in issue size resulting from finalisation of the issue price or rights entitlement ratio would be adjusted against the general corporate purposes allocation. It also said that unutilised amounts from the ₹62.34 lakh general corporate purposes allocation or the ₹70 lakh issue-expense allocation would be redirected to the ₹63.3 crore NBFC capital objective.

What NBFC activities will Crescentis Capital expand?

Crescentis Capital is a non-deposit-taking Non-Banking Finance Company, or NBFC, classified as an Investment and Credit Company, NBFC-Base Layer. It said its current activities include equity and debt investments, securities trading, and providing credit facilities to micro, small and medium enterprises, or MSMEs, and individuals.

The ₹63.3 crore allocation may support both lending and investment operations rather than a single specified product or sector. Crescentis Capital said it may make debt and equity investments in companies across listed and unlisted markets, strategic investments, derivatives and other securities, with decisions depending on opportunities and market conditions in the short and long term.

The offer document does not set pre-defined investment criteria, sector limits or a list of target companies for this allocation. It explicitly states that none of the ₹63.3 crore earmarked for this object will be used to lend to the company’s promoters, group companies or promoter group companies.

Crescentis Capital also cautioned that its fund requirements, cost estimates and deployment plan may change with economic conditions, competition, external factors, financing conditions or revisions to business strategy. Management may therefore reschedule or revise planned expenditure, including allocations for a particular purpose, although the stated FY 2026-27 deployment schedule totals ₹79.62 crore including expenses.

Which borrowings does Crescentis Capital plan to repay?

Crescentis Capital plans to use up to ₹15 crore of net proceeds to repay or prepay certain borrowings, principally revolving loan-against-securities, or LAS, facilities. The company had aggregate LAS outstanding borrowings of ₹14.49 crore on March 31, 2026, which fell to ₹5 crore on June 30, 2026, against aggregate sanctioned limits of ₹20 crore.

Two facilities are identified for potential repayment. Bajaj Finance Limited sanctioned a ₹10 crore loan-against-securities facility on April 11, 2025, with a 36-month tenure; its outstanding balance was ₹10 crore on September 30, 2026, compared with nil on June 30, 2026. Aditya Birla Capital Limited sanctioned a ₹10 crore line of credit on March 23, 2026, secured by pledged securities and valid until March 23, 2027; ₹5 crore was outstanding on both June 30 and September 30, 2026.

The Bajaj facility was for working capital, while the Aditya Birla facility covered onward lending, working capital, investments and general corporate purposes. Both require monthly interest payments and principal repayment within their respective tenure or validity. Crescentis Capital disclosed that both facilities permit prepayment without charges, with Bajaj allowing 0% charges for part or full prepayment and Aditya Birla allowing foreclosure at any time without charges.

The ₹15 crore allocation is not a commitment to retire a fixed balance on a fixed date because the facilities are revolving. Crescentis Capital said it may repay amounts outstanding at the relevant time, which could rise up to the ₹20 crore combined sanctioned limit. It may also use proceeds for additional indebtedness, refinancing or recoupment if an identified loan is repaid, prepaid, redeemed or refinanced before the offer is completed.

How will Crescentis Capital monitor the fund deployment?

Crescentis Capital has appointed Acuité Ratings & Research Limited as monitoring agency for the rights issue. The agency is to submit reports to the board until 100% of gross proceeds, or ₹79.62 crore assuming full subscription, have been used, as required under the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements regulations.

The company said it will disclose use of gross proceeds to its audit committee every quarter under Regulation 32(3) of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements regulations. It must also prepare an annual statement for funds used for purposes other than those in the Letter of Offer until proceeds remain unutilised; that statement is to be certified by its statutory auditors or a peer-reviewed independent chartered accountant and submitted to the monitoring agency.

Pending deployment, Crescentis Capital intends to place net proceeds only with scheduled commercial banks included in the Second Schedule of the Reserve Bank of India Act, 1934, or in investments permitted by the Securities and Exchange Board of India. The company said it had not raised bridge loans as of the Letter of Offer date that were intended to be repaid from the issue proceeds.

The objects have not been appraised by a bank or financial institution. Crescentis Capital also stated that none of its promoters, promoter group members or directors has an interest in the objects, and that no net proceeds will be paid to promoters, promoter group members, directors or key managerial personnel as consideration.

Conclusion

Crescentis Capital’s proposed use of funds is concentrated on scaling its NBFC platform: ₹63.3 crore is allocated to lending and investment capacity, while ₹15 crore is available to reduce or prepay revolving securities-backed borrowing. The allocation links the rights issue primarily to a larger operating capital base rather than to a named acquisition, product launch or pre-set investment portfolio.

The next item to watch is the final issue size and basis of allotment, because the ₹79.62 crore gross-proceeds schedule assumes full subscription and may be adjusted for the rights entitlement ratio. Investors can also track quarterly audit committee disclosures and Acuité Ratings & Research Limited monitoring reports until the gross proceeds are fully deployed in FY 2026-27.