Manba Finance to Raise Rs 100 Crore Capital

Manba Finance has approved a preferential issue of Rs 100 crore via equity shares and warrants. The board also increased the company's authorized share capital to Rs 65 crore.

Reader Takeaway: Fundraise boosts lending capacity for growth, while leadership re-appointments signal continuity for the next three years.

What just happened

The board of Manba Finance approved a preferential issue of securities on a private placement basis. The company will issue up to 5,000,013 equity shares at Rs 135 per share and 24,07,223 convertible warrants at Rs 135 per warrant. Equity shares will be issued to public investors, while warrants are earmarked for the promoter group. The warrants allow conversion into equity within 18 months, with 25% of the price payable upfront.

Why this matters

The infusion of Rs 100 crore is intended to strengthen the company’s balance sheet and support its core lending and financing operations. By issuing a mix of equity to the public and warrants to promoters, the company aims to secure growth capital while maintaining its current shareholding structure. The increase in authorized capital provides the necessary legal headroom for this issuance and potential future capital expansion.

Governance and Leadership

The company has secured leadership continuity by re-appointing Managing Director Mr. Manish Kiritkumar Shah, alongside three Whole Time Directors and an Independent Director. These terms extend through 2027 and 2030, offering stability to the management team during this expansion phase.

What to track next

Investors should look for the outcome of the Extraordinary General Meeting (EGM) on October 19, 2026, where members must officially approve these proposals. Additionally, the subsequent allotment process and adherence to SEBI’s ICDR lock-in regulations will be key monitoring points for shareholders.