Jindal Capital proposes Rs 15.50 crore for NBFC loan growth

Jindal Capital Limited proposes to deploy Rs 15.50 crore from its rights issue towards capital-base augmentation and a larger non-banking financial company, or NBFC, lending operation in FY 2026-27. The amount represents 97.68% of estimated net proceeds of Rs 15.8682 crore, with Rs 36.82 lakh allocated to general corporate purposes.

How will Jindal Capital use the rights issue proceeds?

Jindal Capital proposes to allocate Rs 15.50 crore to augment its capital base and meet funding requirements for increasing the operational scale of its NBFC activities. The company has assigned the remaining Rs 36.82 lakh of estimated net proceeds to general corporate purposes, subject to the final issue price and basis of allotment.

The rights issue has gross proceeds of up to Rs 16.2182 crore and estimated issue-related expenses of Rs 35 lakh, producing estimated net proceeds of Rs 15.8682 crore. The Rs 15.50 crore NBFC allocation is therefore the principal stated use of proceeds, rather than an acquisition, purchase of a named asset or a separately defined branch-expansion programme.

Jindal Capital has proposed deploying the full Rs 15.8682 crore of estimated net proceeds in FY 2026-27, assuming full subscription. If an amount is not deployed in that financial year, the filing permits deployment in a subsequent financial year or ahead of the estimated schedule.

Which lending products will Jindal Capital expand?

Jindal Capital says the Rs 15.50 crore capital allocation may support onward lending in loan against property, business loans and personal loans, in line with credit and risk policies approved by its board. Loan against property is secured against residential or commercial real estate and is aimed primarily at self-employed individuals, small businesses and micro, small and medium enterprises.

Business loans may be secured or unsecured credit facilities for working-capital and business-expansion needs of micro, small and medium enterprises. Personal loans are unsecured facilities for individual borrowers’ financing needs, but Jindal Capital does not disclose a product-by-product allocation or loan-book target for the Rs 15.50 crore planned deployment.

Jindal Capital states that none of the proceeds earmarked for capital augmentation and NBFC expansion will be used to lend to its promoters, promoter group, directors, subsidiaries, associates or group companies. The separate Rs 36.82 lakh general-corporate-purpose allocation may be used for business exigencies, marketing and distribution-network strengthening, brand-building and other board-approved purposes.

Why is Jindal Capital raising additional NBFC capital?

Jindal Capital says the proposed rights issue is intended to support future lending growth and capital needs, not merely to address its current regulatory minimum. Its audited capital to risk-weighted assets ratio, or CRAR, was 44.37% as of March 31, 2026, compared with the 15% minimum cited in the filing for a Base Layer NBFC.

CRAR declined to 44.37% at March 31, 2026 from 63.54% at March 31, 2025 and 66.33% at March 31, 2024. Over the same periods, total risk-weighted assets and contingents increased to Rs 27.4567 crore from Rs 17.3973 crore and Rs 15.0652 crore, respectively, while total capital rose to Rs 12.1827 crore from Rs 11.054 crore and Rs 9.9921 crore.

Tier I capital was Rs 12.1827 crore at March 31, 2026, while Tier II capital was nil, compared with Rs 18.34 lakh of Tier II capital at March 31, 2025 and Rs 40.93 lakh at March 31, 2024. In Jindal Capital’s post-rights-issue illustration, Tier I capital would be Rs 28.400925 crore and CRAR would be 66.12%, with risk-weighted assets and contingents of Rs 42.9567 crore.

The Reserve Bank of India’s Scale Based Regulation framework requires Base Layer NBFCs to maintain minimum net owned funds of Rs 10 crore by March 31, 2027. Jindal Capital reported net owned funds of Rs 12.18 crore as of March 31, 2026, including paid-up share capital of Rs 7.2081 crore, and says the issue would support present and future regulatory capital requirements.

How flexible is Jindal Capital’s deployment plan?

Jindal Capital says its Rs 15.8682 crore deployment plan is based on internal management estimates and its current business plan, and has not been appraised by a bank, financial institution or external agency. Management may reschedule, revise or reallocate planned expenditure if business conditions, costs or other external circumstances change.

Any reduction in funds raised following finalisation of the issue price and rights entitlement ratio will be adjusted against the Rs 36.82 lakh allocated to general corporate purposes. If a funding shortfall or cost overrun arises, Jindal Capital says it may use internal accruals or debt at management’s discretion; it also states that no bridge financing had been availed against the issue proceeds as of the letter of offer date.

Pending deployment, Jindal Capital intends to place proceeds with scheduled commercial banks included in the Second Schedule to the Reserve Bank of India Act, 1934. Its board has confirmed that interim investments will not include equity shares of another listed company and will be recovered when required for the stated objects.

Who will monitor Jindal Capital’s use of proceeds?

Jindal Capital has appointed Brickworks Ratings India Private Limited as monitoring agency for the gross proceeds of up to Rs 16.2182 crore. The agency will report to the board until 100% of gross proceeds have been used, as required under the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements regulations.

Jindal Capital will report the use and application of gross proceeds to its audit committee every quarter and disclose unutilised amounts separately in its balance sheet. It also must provide stock exchanges with quarterly statements of material deviations, if any, and prepare an annual statutory-auditor-certified statement on funds used for purposes other than those stated in the letter of offer.

A variation in the stated objects would require shareholder approval through a special resolution under the Companies Act, 2013. The filing says shareholders who do not agree with an approved variation would receive an exit opportunity from promoters or controlling shareholders at fair market value, subject to applicable law and Securities and Exchange Board of India requirements.

Conclusion

Jindal Capital’s planned deployment concentrates its estimated Rs 15.8682 crore of net rights proceeds on lending capacity, with Rs 15.50 crore designated for NBFC capital and operating-scale expansion. The filing identifies property-backed, business and personal lending as the eligible product areas, but leaves the eventual allocation between those products to board-approved credit and risk policies.

The disclosed next step is the proposed full deployment in FY 2026-27, subject to final issue terms and subscription. Investors can monitor the quarterly reports from Brickworks Ratings India Private Limited, the company’s deviation disclosures and progress toward the March 31, 2027 Base Layer minimum net-owned-fund requirement of Rs 10 crore.