NBFC Srestha Finvest's board approves fundraising, preferential share issue

NBFC Srestha Finvest has informed exchanges that the company’s board has approved a fundraising initiative through Qualified Institutional Placement (QIP). 

"Raising of funds by way of issuance of such number of equity shares having face value of Re.1/- each (Rupee One Only) of the Company, for an aggregate amount not exceeding Rs.100 Crores (Rupees One Hundred Crores only) by way of Qualified Institutional Placement (“QIP”)," the company said.

Also, the board sanctioned the issuance of up to 93 crore equity shares of face value of Re 1 at an issue price of Rs 1.05, which includes a premium of Rs 0.05 per share. This preferential allotment is still subject to necessary approvals from shareholders and other regulatory entities.

Earlier, the company approved a 1:2 stock split i.e. each existing stock with Rs 2 face value will be divided into two Re 1 face value shares. 

"..approved and recommended for sub-division of Company’s 1 (One) Equity Share of Face Value of Rs. 2/- each into 2 (Two) Equity Shares of Face Value of Re. 1/- each held as on the Record date which shall be decided for this purpose," the company said in an exchange filing. 

The company said that it is intended to enhance market liquidity, broaden the shareholder base, and make shares more accessible to small investors. 

The company said the record date for finalising the eligible stockholders for the corporate action will be declared later.