Uday Narang launches Rs 1.46 crore open offer for Pasupati Fincap

Uday Narang to acquire up to 12,22,000 equity shares (26.00%) at Rs 12 per share.
Uday Narang to acquire up to 5,42,925 equity shares (11.55%) at Rs 12 per share.

Reader Takeaway: Offer provides exit option for shareholders; company's net worth is negative.

What just happened

Uday Narang is launching an open offer to acquire up to 12,22,000 equity shares, representing 26.00% of the voting share capital of Pasupati Fincap Ltd. The offer price is fixed at Rs 12.00 per share, with a total offer size of approximately Rs 1.46 crore. This move is triggered by a Share Purchase Agreement (SPA) signed on August 5, 2026, where Narang agreed to buy 5,42,925 shares (11.55% stake) from existing promoter Dinesh Pareekh at the same price.

Why this matters

Upon successful completion, Uday Narang will replace the current promoter group and gain control of Pasupati Fincap. The open offer provides an exit opportunity for existing shareholders at a fixed price. However, the company's recent financial snapshot shows a negative net worth of Rs (55.83) lakh for the quarter ended June 30, 2026, and a loss after tax of Rs 33.83 lakh for the same period.

The backstory

Pasupati Fincap has been facing financial challenges, evident from its negative net worth in recent financial years. The company reported an income from operations of Rs 45.00 lakh for the quarter ended June 30, 2026, but a net loss. The FY2026 audited financials also show a loss after tax of Rs (29.54) lakh.

What changes now

If the open offer is fully subscribed, Uday Narang will gain control of Pasupati Fincap. The acquirer has indicated plans to continue the existing business operations and maintain the current workforce. Significant changes to the business or disposal of assets would require board and shareholder approvals.

Risks to watch

The primary risk for shareholders is whether to tender their shares. The company's negative net worth indicates potential underlying financial distress. Investors should consider the offer price of Rs 12 against the company's book value and future prospects.

Peer comparison

Information on comparable financial services companies regarding open offers or stake acquisitions of this nature is not provided in the filing.

Context metrics (time-bound)

The tendering period for the open offer is scheduled from September 29, 2026, to October 13, 2026. The identified date for determining eligible shareholders is September 15, 2026. The offer is expected to be completed by October 28, 2026.

What to track next

Investors should monitor the subscription level of the open offer. Additionally, any future announcements regarding the company's business strategy or financial performance under the new management will be crucial.