Sanchay Finvest raises Rs 4.85 crore, redeems Rs 47 lakh

Sanchay Finvest Limited raised Rs 4.85 crore through a preferential allotment completed in April 2026 and redeemed Rs 47 lakh of promoter-held preference shares in the quarter ended 30 September 2026. For the half year, its financing inflow was Rs 4.38 crore while inventories increased by Rs 3.56 crore.

How did Sanchay Finvest raise Rs 4.85 crore?

Sanchay Finvest raised Rs 4.85 crore by preferentially allotting 48.50 lakh equity shares of Rs 10 face value each to non-promoter investors during the period ended 30 September 2026. The company said it had obtained in-principle stock-exchange approval for the issue under the applicable Securities and Exchange Board of India regulations.

The subscription amount was received in two instalments: Rs 1.50 crore on 18 April 2026 and Rs 3.35 crore on 20 April 2026. Sanchay Finvest said the full Rs 4.85 crore was recognised as equity share capital in accordance with the Companies Act, 2013 and Indian Accounting Standards, referred to as Ind AS.

Share capital consequently rose to Rs 8 crore at 30 September 2026 from Rs 3.15 crore at 31 March 2026, matching the Rs 4.85 crore subscription. Total equity increased to Rs 5.99 crore from Rs 1.49 crore, although other equity was negative Rs 2.01 crore at 30 September 2026 compared with negative Rs 1.66 crore six months earlier.

Why did Sanchay Finvest redeem promoter preference shares?

Sanchay Finvest redeemed the shares because the 12% redeemable non-cumulative preference shares issued to promoters had become due in October 2024. The instruments had a one-year tenure and were treated as compound financial instruments, with separate liability and equity components under Ind AS.

During the quarter ended 30 September 2026, Sanchay Finvest paid Rs 47 lakh to settle the liability component and derecognised that liability from its accounts. The company’s statutory auditor highlighted the payment in its limited-review report dated 14 November 2026.

The preference shares also had an equity component of Rs 4.29 lakh, which the auditor said was transferred to retained earnings within other equity. The filing does not state why the redemption occurred after the October 2024 due date, nor does it disclose any additional preference-share redemption plan.

Where did Sanchay Finvest's financing cash flow go?

Sanchay Finvest reported a financing cash inflow of Rs 4.38 crore for the half year ended 30 September 2026, consisting of the Rs 4.85 crore share issue less the Rs 47 lakh preference-share redemption. In the corresponding half year ended 30 September 2025, financing activities generated Rs 1.47 lakh, recorded as loans taken.

Operating activities used Rs 4.33 crore in the latest half year, against an operating cash inflow of Rs 61.13 lakh in the prior-year half. The largest disclosed working-capital movement was a Rs 3.56 crore increase in inventories, while trade and other receivables rose by Rs 8.60 lakh.

Inventories stood at Rs 4.23 crore on 30 September 2026, up from Rs 67.22 lakh on 31 March 2026. Current assets increased to Rs 4.82 crore from Rs 1.04 crore over the same period, while total assets rose to Rs 6.04 crore from Rs 2.31 crore. The filing does not specifically allocate the preferential-issue proceeds to inventories.

What changed in Sanchay Finvest's cash and liabilities?

Sanchay Finvest ended 30 September 2026 with cash and cash equivalents of Rs 4.84 lakh, compared with Rs 30,000 at the start of the financial year. The Rs 4.53 lakh increase followed the Rs 4.38 crore financing inflow, which largely offset the Rs 4.33 crore operating cash outflow.

Current liabilities fell to Rs 5.27 lakh at 30 September 2026 from Rs 81.97 lakh at 31 March 2026. The earlier balance included Rs 42 lakh of short-term financial liabilities and Rs 29.92 lakh of other current liabilities; the later balance included Rs 4.02 lakh of trade payables and Rs 1.25 lakh of other current liabilities.

Sanchay Finvest also paid Rs 22.50 lakh to the National Stock Exchange of India on 6 May 2026, after a 4 May 2026 notice concerning non-payment or delayed payment of dues. The exchange’s financial-status report had shown Rs 28.39 lakh of dues at 31 March 2026, of which Rs 3.69 lakh was subsequently reversed or adjusted after reconciliation.

What did the auditor flag in Sanchay Finvest's results?

The auditor identified limitations in evidence over certain balances, while stating that its limited-review conclusion was not modified. It said Sanchay Finvest lacked an appropriate system for obtaining confirmations and reconciling deposits, advances, and other receivable and payable balances, and it could not determine the possible effect on the results.

The auditor also said the classification of trade payables between micro, small and medium enterprises, other creditors, and disputed or undisputed dues relied solely on management assessment without supporting audit evidence. Sanchay Finvest said it was compiling information from suppliers regarding coverage under the Micro, Small and Medium Enterprises Development Act, 2006.

For the half year ended 30 September 2026, Sanchay Finvest reported a loss after tax of Rs 34.46 lakh, narrower than the Rs 60.44 lakh loss in the corresponding prior-year period. Revenue from operations rose to Rs 20.28 lakh from Rs 3.87 lakh, while total expenses increased to Rs 58.31 lakh from Rs 39.91 lakh. The company reports one segment, share broking and trading in shares and securities.

Conclusion

Sanchay Finvest added Rs 4.85 crore of equity through a non-promoter preferential allotment and used Rs 47 lakh to settle the liability component of promoter-held preference shares that had fallen due in October 2024. The half-year balance sheet also showed a Rs 3.56 crore inventory increase, alongside a shift to an operating cash outflow of Rs 4.33 crore from an inflow of Rs 61.13 lakh a year earlier.

The next results will show whether the higher inventory and receivables convert into operating cash flow after 30 September 2026. Investors can also watch for progress on balance confirmations, reconciliations and trade-payable classifications, whose possible financial-statement effect the auditor said it could not determine in its 14 November 2026 report.