Manba Finance Approves ₹99.99 Crore Preferential Issue

Manba Finance Limited approved a ₹99.99 crore preferential issue at ₹135 per security, comprising ₹67.50 crore of public equity and ₹32.49 crore of promoter warrants for lending and financing activities. The issue can add up to 74.07 lakh equity shares after full conversion of the warrants, subject to the stated terms and approvals.

What did Manba Finance approve in the preferential issue?

Manba Finance approved a private-placement preferential issue of equity shares and fully convertible warrants aggregating up to ₹99.99 crore. The board approved the proposal at its meeting on September 22, 2026, and shareholders subsequently approved the special resolution at an Extra-Ordinary General Meeting held on October 19, 2026.

The proposal has two components. First, the company will issue up to 50,00,013 fully paid-up equity shares to non-promoter or public-category allottees. Second, it will issue up to 24,07,223 fully convertible warrants to promoter and promoter-group allottees. Every security is priced at ₹135, including a ₹125 premium over the ₹10 face value per share.

The stated purpose of the fundraising is to support Manba Finance's lending and financing activities. The company is an NBFC offering finance for two-wheelers, three-wheelers, used cars, MSME LAP loans and personal loans. Additional capital can support these operating activities, while the actual deployment and financial effect will depend on the company's subsequent execution.

How is the ₹99.99 crore issue structured?

The ₹99.99 crore issue is structured as ₹67.50 crore of direct equity issuance to public-category investors and ₹32.49 crore of warrants to the promoter group. The public equity component involves 50,00,013 shares and aggregates to ₹67,50,01,755. The warrant component involves 24,07,223 warrants and aggregates to ₹32,49,75,105.

Each warrant carries the right to subscribe to one fully paid-up equity share within 18 months of warrant allotment. Warrant holders must make an upfront payment of 25% of the issue price at allotment, or ₹33.75 per warrant. The remaining amount is payable when the warrants are converted into equity shares within the specified period.

The promoter warrant allocation is split between Manba Investments and Securities Private Limited, which is proposed to receive 22,22,223 warrants, and Manish Kiritkumar Shah, who is proposed to receive 1,85,000 warrants. Both promoter allottees confirmed their intention to subscribe, according to the information provided by the company.

What approvals and governance actions were involved?

Shareholders approved the preferential issue through a special resolution, with 3,85,37,453 votes in favour and no votes against. The shareholder approval followed the board's September 22 decision and enabled the company to proceed with the proposed issue, subject to applicable regulatory and procedural requirements.

The materials also refer to an increase in authorised share capital to ₹65 crore from ₹55 crore. This change provides room for the proposed issue and potential conversion of the warrants, which could result in the issuance of additional equity shares over the 18-month conversion period.

Alongside the fundraising proposal, the company disclosed certain board and management reappointments. Neelam Tater was reappointed as an independent director for a five-year term from October 25, 2026 to October 24, 2031. Manish Kiritkumar Shah was reappointed as managing director for April 1, 2027 to March 31, 2030, while Monil Manish Shah and Nikita Manish Shah were reappointed as whole-time directors for three-year terms beginning January 15, 2027.

What does the issue mean for Manba Finance shareholders?

The direct equity issue will add new shares immediately on allotment, while the promoter warrants may add shares if converted within 18 months. Therefore, the final share-capital outcome depends partly on warrant conversion. The issue price of ₹135 applies to both the public equity shares and promoter warrants, providing a common pricing reference for the entire transaction.

Promoter participation through warrants represents ₹32.49 crore of the proposed issue value. However, only 25% of the warrant price is payable upfront, with the balance becoming due upon conversion. This differs from the public equity allocation, where the shares are issued as fully paid-up equity for cash.

Manba Finance is listed on both the National Stock Exchange and the Bombay Stock Exchange under the scrip symbol MANBA. Its total shareholder count declined to 17,281 in September 2026 from 36,351 in September 2024, based on the shareholding-history data provided. That change describes the number of registered shareholders and does not by itself establish changes in business performance or investor returns.

How does the fundraising fit Manba Finance's recent financing activity?

The preferential issue follows recent debt-market activity by Manba Finance. The company allotted ₹50 crore of non-convertible debentures at a 10.65% coupon on September 24, 2026, after allotting ₹90 crore of NCDs at a 10.60% coupon on private placement on August 24, 2026.

The equity and warrant issue is separate from these NCD allotments. NCDs are debt obligations with stated coupon payments, whereas the preferential issue raises equity-linked capital. The combination of recent NCD issuances and the proposed preferential issue shows that Manba Finance has used more than one financing route during 2026 for its funding requirements.

Conclusion

Manba Finance's approved preferential issue combines immediate public equity capital with promoter warrants that may convert into shares over time. The ₹99.99 crore proposal is intended for lending and financing activities and follows ₹140 crore of NCD allotments reported in August and September 2026.

Investors can watch for the allotment of the public equity shares and warrants, the timing and extent of warrant conversion during the 18-month window, and the company's disclosures on use of the funds in its lending operations. The stated conversion terms and authorised-capital increase are central to assessing the eventual equity-share impact.