Frontier Capital Charts ₹6 Cr Rights Issue to Fuel Strategic Realignment

Frontier Capital Ltd has greenlit a ₹60 million rights issue, signaling a fresh capital infusion aimed at strengthening its financial base and supporting future growth initiatives. The board approved the move via a resolution dated March 28, 2025, under Regulation 30 of SEBI’s LODR norms. The issue will offer equity shares of face value ₹10 each to existing shareholders, with the final entitlement ratio and pricing to be disclosed in the upcoming Letter of Offer.

 

The rights issue is part of Frontier Capital’s broader strategy to streamline operations and unlock value across its financial services portfolio. While the company has not specified the exact deployment of funds, sources indicate the proceeds may be used for working capital, debt reduction, and expansion of its lending and advisory verticals.

 

Key Highlights:

 

- Issue Size: ₹6 crore (₹60 million)

- Type: Rights issue to existing shareholders

- Face Value: ₹10 per share

- Purpose: Capital augmentation, operational expansion, and balance sheet strengthening

- Regulatory Compliance: Approved under SEBI LODR Regulation 30

- Next Steps: Filing of Letter of Offer, record date announcement, and issue timeline

 

This marks Frontier Capital’s first equity raise in over three years and comes amid a renewed focus on financial discipline and shareholder value creation. The company has also recently appointed a new independent director and compliance officer, signaling governance enhancements ahead of the capital raise.

 

Source: Moneycontrol, BSE Corporate Filings, InvestorGain