Mantra Capital Receives BSE In-Principle Approval for Capital Raise

BSE has granted 'in-principle' approval for Mantra Capital Limited to issue equity shares and warrants, a move intended to strengthen the company's financial base for future growth.

What Happened

Mantra Capital Limited announced on March 25, 2026, that it has received 'in-principle' approval from BSE Limited for a preferential issuance of equity shares and warrants. The approval covers the issuance of up to 48,25,000 equity shares and 45,00,000 warrants. The minimum issue price for both instruments has been set at ₹20 per instrument, with a face value of ₹10 for each equity share.

This approval is a key step in the company's capital raising plan. The 'in-principle' nod from the stock exchange is required before Mantra Capital can proceed with allotting and subsequently listing these securities.

Why This Matters

The capital raise aims to bolster Mantra Capital's financial foundation. As a Non-Banking Financial Company (NBFC), strengthening its capital base is vital for expanding lending operations, meeting regulatory requirements, and supporting strategic growth objectives in the competitive financial services sector.

Company Background

Mantra Capital, formerly Savani Financials Limited, has been active in managing its capital structure. The company previously conducted a rights issue in May 2024. In February 2026, shareholders approved a preferential issue of ₹18.65 crore in equity shares and warrants to enhance its capital base. This latest BSE approval follows those shareholder resolutions. The company also recently completed its name change, receiving a fresh RBI Certificate of Registration in December 2025.

Next Steps and Expectations

The company secures conditional approval to raise capital via equity and warrants, aiming to strengthen its balance sheet. The capital is expected to fund expansion of its loan book and operational reach. This positions Mantra Capital to better serve entrepreneur-led businesses. Shareholders may see an increase in the company's equity base once the issue is complete.

Risks and Conditions

BSE's 'in-principle' approval is subject to strict conditions. Mantra Capital must ensure robust internal controls to monitor trades by proposed allottees before allotment, obtaining undertakings to prevent intra-day trading and sales until the allotment date, in line with SEBI (ICDR) Regulations. Furthermore, BSE reserves the right to withdraw approval if any provided information is found to be incomplete, incorrect, misleading, or false. The ultimate listing of these securities requires separate, final approval from the stock exchange, which is not guaranteed by this 'in-principle' nod.

Peer Landscape

Mantra Capital operates in the NBFC space alongside major players like Muthoot Finance, Bajaj Finance, and Cholamandalam Investment and Finance. These peers manage assets worth hundreds of thousands of crores, highlighting Mantra Capital's current focus on building its capital base for growth within its specific market segments. The approved capital raise, while significant for Mantra Capital, is a step towards scaling operations in a landscape dominated by much larger entities.

Key Metrics

• Mantra Capital's Assets Under Management (AUM) crossed ₹100 crore in Q3 FY26.
• The company reported annual revenue of ₹3.43 crore for the fiscal year ended March 31, 2025.
• As of March 31, 2025, its paid-up capital stood at approximately ₹31.95 crore.

What to Watch

Investors will track the completion of post-issue formalities, including the formal allotment of shares and warrants. This will be followed by the submission of the listing application to the stock exchange within twenty days of allotment and obtaining final listing approval from BSE. Monitoring the deployment of raised capital and its impact on the company's financial performance and growth trajectory will also be key.