Crescentis Capital directs Rs 63.30 crore to NBFC growth

Crescentis Capital Limited, referred to as Crescentis Capital, plans to direct Rs 63.30 crore of its proposed Rs 79.62 crore rights issue towards expanding its non-banking financial company operations in FY 2026-27. The allocation represents 80.2% of estimated net proceeds, while Rs 15 crore is earmarked for borrowing repayment or prepayment.

How will Crescentis Capital use the rights issue proceeds?

Crescentis Capital has allocated Rs 63.30 crore to augment its capital base and scale its non-banking financial company, or NBFC, activities, Rs 15 crore for repayment or prepayment of borrowings, and Rs 62.34 lakh for general corporate purposes. Gross proceeds are estimated at Rs 79.62 crore, less Rs 70 lakh of issue-related expenses, resulting in estimated net proceeds of Rs 78.92 crore.

The NBFC capital-base allocation accounts for 79.5% of gross proceeds and 80.2% of net proceeds, compared with 18.8% of gross proceeds for borrowing repayment. General corporate purposes account for 0.8% of gross proceeds. Crescentis Capital said any amount not used for general corporate purposes or issue expenses will be redirected to the NBFC capital-base and operating-scale objective.

Crescentis Capital expects to deploy the stated Rs 79.62 crore of gross proceeds, including Rs 70 lakh of expenses, during FY 2026-27. The timeline assumes full subscription, finalisation of the basis of allotment and adjustment for the rights-entitlement ratio. The company said the entire funding requirement for the stated objects will come from net proceeds and that it does not require separate financing arrangements.

What NBFC activities will Crescentis Capital fund?

Crescentis Capital will use Rs 63.30 crore to increase the operating scale of its lending and investment businesses as a non-deposit-taking Investment and Credit Company NBFC in the Base Layer category. Its disclosed activities include equity and debt investments, trading in securities, and providing credit facilities to micro, small and medium enterprises and individuals.

The company said the allocation may support debt and equity investments across listed and unlisted companies, strategic investments, derivatives and other securities. Crescentis Capital has not set a sector limit, investment-stage restriction, asset-growth target or named recipient for the Rs 63.30 crore allocation. Its investment scope is based on opportunities and market conditions across short- and long-term periods.

Crescentis Capital has stated that none of the Rs 63.30 crore allocated to the NBFC expansion object will be used to provide loans to promoters, group companies or promoter-group companies. The document also says no promoter, promoter-group member, director or key managerial personnel will receive issue proceeds as consideration.

The company cautioned that its business plan, estimated costs, fund allocation and funding requirements may change with economic conditions, competition, external factors or business strategy. Crescentis Capital may therefore reschedule or revise planned expenditure, while a variation in issue objects remains subject to applicable company-law requirements and shareholder authorisation except in circumstances of business exigencies.

Which borrowings will Crescentis Capital repay?

Crescentis Capital has earmarked Rs 15 crore for partial or full repayment or prepayment of loan-against-securities, or LAS, facilities from Bajaj Finance Limited and Aditya Birla Capital Limited. The facilities are revolving arrangements used for short-term liquidity, meaning the amounts drawn and outstanding can change with liquidity requirements.

The combined sanctioned limit under the two facilities is Rs 20 crore. Aggregate LAS borrowings were Rs 14.49 crore on March 31, 2026, declined to Rs 5 crore on June 30, 2026, and rose to Rs 15 crore on September 30, 2026. The September amount matched the rights issue allocation for debt repayment, although Crescentis Capital said outstanding balances can rise up to sanctioned limits.

Bajaj Finance sanctioned its Rs 10 crore facility on April 11, 2025 for 36 months, with working capital as its stated purpose. Aditya Birla Capital sanctioned its Rs 10 crore line of credit on March 23, 2026, valid until March 23, 2027, for onward lending, working capital, investments and general corporate purposes.

Crescentis Capital said interest under both facilities is payable monthly and principal is repayable within the facility tenure. The Bajaj Finance facility permits part or full prepayment with zero charges, while the Aditya Birla Capital facility may be prepaid or foreclosed without charges. The company may select borrowings for repayment based on costs, prepayment terms, penalties, outstanding amounts, tenor and other commercial considerations.

What are the rights issue terms and monitoring arrangements?

Crescentis Capital is offering up to 1,02,08,129 equity shares with a face value of Rs 10 each at Rs 78 per share, producing a maximum issue size of Rs 79.62 crore. Its board authorised the issue on September 30, 2026. Assuming full subscription and allotment, paid-up equity shares would increase from 1,70,13,549 to 2,72,21,678.

The offer would add Rs 10.21 crore of nominal share capital. The securities premium account would increase from Rs 42.03 crore before the issue to Rs 111.45 crore after the issue, assuming full subscription and allotment. Crescentis Capital disclosed an ex-rights price of Rs 94.34 per equity share under the takeover regulations, compared with the Rs 78 rights offer price.

Acuité Ratings & Research Limited will monitor use of gross proceeds until 100% is utilised. Crescentis Capital said it will provide quarterly disclosures to its audit committee on the uses and applications of gross proceeds and disclose unutilised amounts in relevant balance sheets until the proceeds are fully used.

Pending deployment, Crescentis Capital intends to place net proceeds only with scheduled commercial banks included in the Second Schedule to the Reserve Bank of India Act, 1934, or make investments permitted by the Securities and Exchange Board of India. The company had not raised bridge loans proposed for repayment from issue proceeds as of the letter of offer date.

Will promoters participate in Crescentis Capital's rights issue?

Crescentis Capital's two promoters have confirmed that they will subscribe to their full rights entitlements and will not renounce them, except for entitlement transfers between the promoters. They may also subscribe to additional shares left unsubscribed, subject to rules on open-offer obligations and minimum public shareholding.

The promoter commitments are conditional on compliance with the Securities and Exchange Board of India takeover regulations and public-shareholding requirements. Crescentis Capital said it complied with the minimum public-shareholding requirement before the issue and expects to remain compliant after the issue. The company also disclosed that no strategic or financial partner is attributed to the issue objects.

Conclusion

Crescentis Capital's proposed rights issue is principally designed to provide Rs 63.30 crore for a larger NBFC lending and investment operation, with Rs 15 crore separately allocated to revolving LAS facilities. The allocation places capital-base expansion ahead of debt repayment, while the Rs 62.34 lakh general corporate-purpose component remains limited.

The next disclosed event is the intended FY 2026-27 deployment of proceeds, subject to full subscription, allotment and the final rights-entitlement ratio. Investors can watch Acuité Ratings & Research monitoring reports, quarterly audit-committee disclosures, LAS balances at the time of repayment and any company revision to its funding plan or allocations.