Manba Finance allots Rs 89.9976825 crore preferential securities

Manba Finance allotted preferential securities carrying aggregate issue consideration of Rs 89.9976825 crore on November 6, 2026, comprising Rs 57.500172 crore of fully paid equity shares for 13 public investors and Rs 32.4975105 crore of warrants for two promoter allottees. The warrant portion can become equity only if exercised within 18 months.

How much did Manba Finance allot in the preferential issue?

Manba Finance allotted 42,59,272 equity shares and 24,07,223 fully convertible warrants at Rs 135 each, with aggregate consideration of Rs 89.9976825 crore. The equity-share allotment accounted for Rs 57.500172 crore, while the warrants represented Rs 32.4975105 crore of potential exercise consideration.

The 42,59,272 fully paid shares were allotted for cash to 13 non-promoter or public-category investors. The 24,07,223 warrants went to two promoter-category allottees, and each warrant gives its holder the right to subscribe for one equity share with a face value of Rs 10 at Rs 135 per share.

The issue price included a Rs 125 premium over the Rs 10 face value of an equity share. Manba Finance said Rs 135 was not below the floor price determined under the Securities and Exchange Board of India, or SEBI, Issue of Capital and Disclosure Requirements Regulations, 2018, using September 18, 2026 as the relevant pricing date.

Who received Manba Finance’s preferential shares and warrants?

Manba Finance allotted all 24,07,223 warrants to Manba Investments & Securities Private Limited and Manish Kiritkumar Shah. Manba Investments & Securities Private Limited received 22,22,223 warrants, while Manish Kiritkumar Shah received 1,85,000 warrants.

The largest public equity allocation was 14,81,482 shares to Zenila Ventures LLP, followed by 7,40,741 shares to Limona Ventures LLP. Hem Securities Limited and Sanjay Popatlal Jain each received 3,70,371 shares, while Chetan Kheraj Dedhia received 2,22,226 shares and Mithali Dharmesh Badani received 37,038 shares.

On the filing’s fully diluted basis, which assumes conversion of all the new warrants, Manba Investments & Securities Private Limited’s holding would increase from 1,39,06,038 shares, or 27.68%, to 1,61,28,261 shares, or 28.34%. Manish Kiritkumar Shah’s holding would increase from 65,59,848 to 67,44,848 shares, although its percentage would decline from 13.06% to 11.85% as the overall share base expands.

The post-issue percentages in the filing are calculated on a diluted basis and therefore include the 24,07,223 shares issuable on warrant conversion. Zenila Ventures LLP would hold 2.60% on that basis, compared with 1.30% for Limona Ventures LLP and 0.65% for each of Hem Securities Limited and Sanjay Popatlal Jain.

How did the allotment change Manba Finance’s share capital?

Manba Finance’s paid-up equity capital rose immediately to Rs 54.498682 crore from Rs 50.23941 crore because the 42,59,272 equity shares were fully allotted on November 6, 2026. Its outstanding equity shares increased from 5,02,39,410 to 5,44,98,682 after that allotment.

If all 24,07,223 warrants are exercised, Manba Finance said paid-up equity capital would reach Rs 56.905905 crore, comprising 5,69,05,905 equity shares. That would add Rs 2.407223 crore of paid-up capital beyond the immediate post-allotment level, reflecting the Rs 10 face value of each conversion share.

The newly allotted equity shares will rank pari passu with existing shares, meaning they rank equally in all respects. Manba Finance said the new shares would be listed on BSE Limited and the National Stock Exchange of India Limited, or NSE, subject to the required approvals, while conversion shares need approvals at the relevant time.

What are the payment terms and deadline for Manba Finance warrants?

Manba Finance’s warrant holders must pay Rs 33.75 per warrant upfront and Rs 101.25 per warrant when they exercise their conversion right. The 25% upfront payment totals Rs 8.1243777625 crore for the 24,07,223 warrants, while the remaining 75% becomes payable only on exercise.

Each warrant may be exercised in one or more tranches within 18 months from the November 6, 2026 allotment date. A holder that does not exercise within that tenure will see the unconverted warrants lapse, and the amount already paid on those warrants will be forfeited, according to the filing.

The warrants therefore differ from the Rs 57.500172 crore equity allotment, whose shares were fully paid and issued immediately. The full Rs 32.4975105 crore warrant consideration is conditional on exercise, even though the warrant issue price is also Rs 135 per instrument.

Manba Finance said the allotted equity shares, equity shares issued following warrant exercise and applicable pre-preferential holdings are subject to lock-in requirements under Chapter V of the SEBI regulations. The company also said it will notify stock exchanges when warrants convert or when their tenure lapses.

What approvals led to Manba Finance’s November 2026 allotment?

Manba Finance completed the November 6, 2026 allotment after board approval on September 22, 2026, shareholder approval on October 19, 2026 and in-principle exchange approvals on October 23, 2026. Shareholders approved the proposal through a special resolution at an extraordinary general meeting.

The October 23 approvals came from BSE Limited and NSE, before the board meeting that approved the actual allotment on November 6. The board meeting began at 5.00 p.m. and concluded at 5.30 p.m., according to the company’s disclosure.

The preferential issue was made under the SEBI Issue of Capital and Disclosure Requirements Regulations, 2018, together with the Companies Act, 2013 and related rules. Manba Finance described the transaction as a preferential issue of public equity shares and promoter warrants rather than a public offering or rights issue.

Conclusion

Manba Finance has increased its immediate paid-up capital by Rs 4.259272 crore through the issue of 42,59,272 fully paid shares, while creating a further possible Rs 2.407223 crore increase if all 24,07,223 promoter warrants convert. The transaction combines Rs 57.500172 crore of already allotted public equity with warrants whose full Rs 32.4975105 crore value depends on later exercise.

The next disclosed event to watch is the 18-month warrant exercise period beginning November 6, 2026. If the warrants are exercised, Manba Finance would reach 5,69,05,905 shares and Rs 56.905905 crore of paid-up capital; if they are not exercised within the tenure, they will lapse and their upfront payments will be forfeited.