Image Source: IPO Central
Savani Financials Limited, which is listed on the BSE and a Non-Banking Financial Company (NBFC), has stated that its Board of Directors has cleared the issue of Secured Non-Convertible Debentures (NCDs) up to ₹150 million. The NCDs are being issued on a preferential basis in private placement and represents a major step towards strengthening the funding base of the company and facilitating future growth plans.
Brief Introduction
Savani Financials Limited was incorporated in 1983 with its head office in Maharashtra. It is engaged in the NBFC business and is ranked as a smallcap stock on the BSE. With a market capitalization of ₹57.68 crore as of 30th April 2025, the company is looking to reinforce its capital base by issuing this NCD, post-board approval and regulatory compliance.
Board Approval and Purpose
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The Board of Directors convened on May 5, 2025, and authorized the issue of Secured Non-Convertible Debentures (NCDs) up to ₹150 million.
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The NCDs will be issued preferentially through private placement, as per SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, and SEBI LODR Regulations.
Fundraising Structure
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The fundraising can be done in one or more tranches based on market conditions and company needs.
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The proceeds from the issue will be utilised to fund business growth, enhance the balance sheet, and could be used for general corporate expenses.
Company Profile and Financials
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Savani Financials is a public limited company with its registered office in Maharashtra and Corporate Identification Number (CIN) L67120MH1983PLC031614.
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As of 31st March 2024, the company had total operating revenue of ₹0.12 crore and equity capital of ₹4.00 crore.
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The share price of the company was ₹18.07 as on April 30, 2025, the 52-week high being ₹25.94 and the 52-week low being ₹12.48.
Regulatory Compliance
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The offer will be made in accordance with all relevant SEBI regulations and other statutory rules.
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The company has not been classified as a willful defaulter or a fraudulent borrower by RBI or any government.
Other Board Decisions
In conjunction with the NCD issuance, the board also deliberated on the approval of audited financial performance for the year ended March 31, 2025, possible equity raising through the use of different instruments, and issue of sweat equity shares to high-level managerial staff.
Sources: Business Standard, Financial Express, Savani Financials Letter of Offer, April 2024
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