Board of NBFC Srestha Finvest approves fund raising, issue of preference shares

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

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

Also, the board has approved the issue of equity shares of up to 93 crore 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 special offer is still subject to the necessary approvals from shareholders and other regulatory bodies.

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

“..approved and recommended sub-division of 1 (One) Equity Shares of Face Value of Rs. 2/- each into 2 (two) Equity Shares of Face Value of Re. 1/- each held for Record on a date to be determined hereafter purpose,” the company said in an exchange filing.

The company said it aims to improve liquidity in the market, expand its shareholder base, and make shares more accessible to small investors.

The company said the record date for finalizing the relevant shareholders of the corporate action will be announced at a later date.