U.Y. Fincorp approves Rs 187.17 crore preferential issue

U.Y. Fincorp Limited approved a Rs 187.17 crore preferential issue on November 2, 2026, comprising Rs 127.17 crore of equity shares and Rs 60 crore of convertible equity warrants, each priced at Rs 24.40. The proposal remains subject to shareholder and regulatory or statutory approvals.

What did U.Y. Fincorp's board approve?

U.Y. Fincorp approved two preferential issues on November 2, 2026: up to 5,21,20,000 equity shares and up to 2,45,90,000 convertible equity warrants. At the disclosed price of Rs 24.40 per security, the combined stated fund-raising amount is Rs 187.17 crore. The board meeting began at 4:00 p.m. and concluded at 5:20 p.m.

The equity-share component is the larger of the two proposed issues, with a stated value of Rs 127.17 crore, compared with Rs 60 crore for the warrant component. The direct equity proposal covers 5,21,20,000 securities, more than double the 2,45,90,000 warrants. Both instruments have a face value of Rs 5 and include a premium of Rs 19.40 per security.

The board approval does not confirm an allotment. U.Y. Fincorp said the preferential issue requires shareholder approval and approvals from regulatory or statutory authorities, and will be made under Chapter V of the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements Regulations, 2018, the Companies Act, 2013, and applicable rules.

How do U.Y. Fincorp's shares and warrants differ?

U.Y. Fincorp's direct equity issue proposes up to 5,21,20,000 shares, while each of its 2,45,90,000 warrants carries an entitlement to subscribe to one equity share. Both securities are proposed at Rs 24.40 each, but warrants have a separate conversion mechanism that applies after their allotment.

Each warrant may be converted into one equity share in one or more tranches within 18 months from the date of warrant allotment. U.Y. Fincorp said the conversion option can be exercised only after payment of the full warrant issue price. The equity shares issued directly do not have this 18-month conversion feature.

The filing states that the warrants and equity shares resulting from conversion will be subject to lock-in requirements under the applicable SEBI regulations. The 5,21,20,000 directly issued equity shares will also be subject to the prescribed lock-in conditions. U.Y. Fincorp did not disclose a separate lock-in duration for either security type in the announcement.

What is U.Y. Fincorp's preferential issue price?

U.Y. Fincorp disclosed an issue price of Rs 24.40 for each equity share and each convertible equity warrant. The price consists of a Rs 5 face value and a Rs 19.40 premium, and the 5,21,20,000-share issue corresponds to the stated Rs 127.17 crore amount.

The same Rs 24.40 price applied to the proposed 2,45,90,000 warrants, producing the stated Rs 60 crore aggregate value. U.Y. Fincorp said the price will not be below the price determined under Chapter V of the SEBI Issue of Capital and Disclosure Requirements Regulations, and the annexure allows for a higher price as may be decided at the time of issue or allotment.

The company stated that the equity-share issue price is payable in cash. For warrants, the disclosure specifically says the full issue price must be paid before the holder exercises the conversion option, which may be used in one or more tranches during the 18-month period after allotment.

Who are the proposed allottees in U.Y. Fincorp's issue?

U.Y. Fincorp identified 3 proposed allottees for the warrant issue and 136 proposed allottees for the equity-share issue. The difference is material to the structure of the two legs: the Rs 60 crore warrant issue is allocated among 3 proposed allottees, while the Rs 127.17 crore share issue has 136 proposed allottees.

Among the named warrant allottees, Udai Kothari is proposed to receive up to 92,20,000 warrants, representing an investment amount of Rs 22.50 crore, and Dipti Deepak Kothari is proposed to receive up to 51,25,000 warrants, representing Rs 12.51 crore. These two allocations total 1,43,45,000 warrants against the proposed warrant issue of 2,45,90,000 warrants.

For the equity-share issue, Naresh Saraaf is listed for up to 25,60,000 shares, with an investment amount of Rs 6.25 crore. Oswal Capital Ventures Advisory LLP and Areeza India Strategy Partners LLP are each listed for up to 20,45,000 shares, with Rs 4.99 crore allocated to each. U.Y. Fincorp stated that pre- and post-shareholding information was provided in Annexure 2, but that table is not included in the supplied announcement.

What approvals and events should U.Y. Fincorp investors watch?

U.Y. Fincorp has approved a notice to convene an Extraordinary General Meeting, or EGM, for the proposed Rs 187.17 crore preferential issue. The November 2, 2026 filing does not disclose the EGM date, voting outcome, allotment date, or timing of regulatory or statutory approvals.

If the 2,45,90,000-warrant allotment proceeds, conversion activity during the 18 months after allotment will be a subsequent disclosed mechanism to monitor. Each converted warrant would result in one equity share, while the 5,21,20,000 direct equity shares are proposed for allotment without such a conversion period.

The filing also leaves the final issuance and allotment process subject to the applicable SEBI pricing framework and required approvals. The disclosed Rs 24.40 price is the stated issue price for both securities, but U.Y. Fincorp's annexure says the price cannot be below the regulatory determination and may be higher at the relevant time.

Conclusion

U.Y. Fincorp's November 2, 2026 board decision sets out a Rs 187.17 crore capital proposal split between Rs 127.17 crore of direct equity shares and Rs 60 crore of convertible warrants. The equity leg covers 5,21,20,000 shares, while the warrant leg could result in up to 2,45,90,000 equity shares if holders exercise conversion rights.

The next disclosed step is shareholder consideration through the approved EGM notice, followed by any required regulatory or statutory approvals. If warrants are allotted, the unresolved point is the timing and extent of conversions during the 18 months from allotment, with full warrant issue-price payment required before conversion.