Manba Finance Plans ₹99.99 Crore Preferential Issue

Board moves on capital expansion

Manba Finance Limited has announced plans to raise up to ₹99.99 crore through a preferential issue of equity shares and convertible warrants. The proposal is linked to an increase in the company’s authorised share capital and was placed before shareholders through an extraordinary general meeting, or EGM. The fundraising plan comes alongside continued use of private-placement debt instruments by the non-banking financial company. For investors, the announcements bring together three important capital-management actions: equity fundraising, warrant issuance and fresh borrowing capacity.

The company has stated that the preferential issue includes equity shares for non-promoter investors and convertible warrants for members of the promoter group. Manba Investments and Manish K. Shah were identified as promoter-group participants in the warrant issue. The proposed issue price is ₹135 per unit. Shareholders have also approved the preferential issue, the capital increase and director re-appointments, according to the disclosures provided.

Preferential issue structure

The EGM authorised an increase of ₹10 crore in Manba Finance’s authorised share capital. It also approved a preferential issue of up to 7.4 million equity shares and up to 2.4 million convertible warrants at ₹135 per unit. The company described the aggregate fundraising proposal as ₹99.99 crore.

The disclosed breakup attributes ₹67.50 crore of equity shares to non-promoter investors and ₹32.49 crore of convertible warrants to the promoter group. Convertible warrants give the holders the right to receive equity shares upon conversion under the applicable terms. The issue therefore combines immediate equity issuance with an instrument that may convert into equity later.

The preferential route is distinct from a public share sale because securities are issued to identified investors, subject to shareholder and regulatory requirements. The authorised-capital increase is necessary to create room for the proposed issue within the company’s share-capital structure. The disclosures do not specify a separate timetable for completion of all warrant conversions.

Debt funding remains active

Manba Finance has also continued to raise funds through non-convertible debentures, or NCDs. On September 24, 2026, the board approved the allotment of non-convertible securities through private placement. The company allotted 50,000 secured, rated, listed and redeemable NCDs with a face value of ₹10,000 each, aggregating to ₹50 crore.

These NCDs carry a coupon rate of 10.65% and have a 26-month tenure, with maturity scheduled for November 24, 2028. Principal and interest are payable through monthly instalments beginning in October 2026. The instruments are secured by an exclusive charge over receivables with a cover of 1.10 times and are proposed to be listed on BSE’s wholesale debt market.

The ₹50 crore allotment followed an earlier ₹90 crore NCD allotment in August 2026 at a coupon of 10.60%. Both issuances fall under a board-approved debt programme of up to ₹200 crore. The company’s half-yearly filing as of September 30, 2026 also disclosed private-placement NCDs with coupon rates ranging from 10.60% to 11.50%.

Further ₹200 crore debt proposal

Manba Finance’s board was scheduled to meet on October 27, 2026, to consider a fresh private-placement issue of debt securities of up to ₹200 crore. The proposed instruments may include secured NCDs, perpetual debt instruments, unsecured subordinated NCDs, bonds and other debt securities. The company said the issuance could take place in one or more tranches.

The board was also due to consider unaudited financial results for the quarter ended September 30, 2026 and a possible second interim dividend for FY27. The stated record date for determining entitlement to that interim dividend was November 6, 2026, subject to board approval of the dividend. This proposal is separate from the earlier debt programme and represents a further financing item under board consideration.

Dividend decisions in 2026

The company held its 30th annual general meeting on September 26, 2026. Shareholders approved the audited financial statements for FY26 and a final dividend of ₹0.25 per equity share. The record date for determining entitlement to the final dividend was September 18, 2026, following board approval on August 31, 2026.

Manba Finance had earlier declared a first interim dividend of ₹0.25 per share for FY27. The record date for that payment was August 7, 2026, and the dividend was payable on or before August 20, 2026. The available data places the dividend yield at 0.17%.

Capital adequacy context

The company’s capital adequacy ratio declined from 29.81% in FY25 to 25%, based on the information provided. The stated plan to address this includes preference-share issuance of about ₹100 crore. The proposed ₹99.99 crore preferential issue is therefore relevant to Manba Finance’s capital position as it seeks to supplement debt funding with equity-linked capital.

For an NBFC, capital levels influence its ability to support lending growth while meeting prudential requirements. Debt can expand available funding, but equity and equity-linked instruments can strengthen the capital base without creating scheduled interest obligations in the same manner as NCDs. The company has not provided detailed deployment plans for the proposed preferential-issue proceeds in the supplied disclosures.

Key disclosed figures

What investors will track

The principal near-term disclosures are the outcome of the October 27 board meeting, the September-quarter financial results and any decision on the second interim dividend. Investors will also monitor the execution of the preferential issue and the terms of any fresh debt placement. The final impact on share capital will depend on the issue and, in the case of warrants, their conversion according to the approved terms.

Manba Finance’s recent announcements show an approach combining private-placement borrowings, dividend distributions and equity-linked fundraising. The ₹99.99 crore preferential issue and ₹10 crore authorised-capital increase provide the equity side of that strategy, while the company continues to access NCD markets. Further details will depend on subsequent board decisions and regulatory filings.