VIJI FINANCE Approves ₹35.7 Crore Warrant Issue

VIJI FINANCE LIMITED plans to raise ₹35.70 crore by issuing up to 12.75 crore warrants at ₹2.80 each. This capital infusion aims to bolster the company's financial position.

Funding Plan Approved

VIJI FINANCE LIMITED's Board of Directors has approved a preferential issue of up to 12.75 crore warrants, targeting ₹35.70 crore in fundraising at ₹2.80 per warrant. The plan requires shareholder approval at an Extra-Ordinary General Meeting (EGM) on April 23, 2026, alongside clearances from stock exchanges and regulatory authorities. A Preferential Allotment Committee has been established to manage this process.

Strengthening the NBFC

This capital infusion is expected to significantly boost VIJI FINANCE's financial capacity. The Non-Banking Financial Company (NBFC) could use these funds for operational expansion, meeting stricter regulatory requirements, or improving its liquidity. The move signals a strategic effort to strengthen its balance sheet and support future growth.

Background to the Move

VIJI FINANCE LIMITED, an NBFC offering various financial services, has been actively planning strategic capital raises. The board met on March 24, 2026, to finalize this preferential warrant issue. Earlier, the company had temporarily closed its trading window from March 19, 2026, indicating an upcoming announcement on capital raising. It recently increased its authorized share capital to ₹18 crore to accommodate growth ambitions.

Impact on Shareholders and Operations

Successful completion of the warrant issue will increase the company's capital base. Existing shareholders may face dilution depending on the final terms and how many warrants are exercised. The raised funds are intended for business expansion or meeting regulatory capital adequacy standards, potentially enhancing the company's lending capacity.

Key Hurdles Ahead

The main challenge is obtaining all necessary approvals. The preferential issue depends on shareholder consent at the EGM on April 23, 2026, and requires clearance from stock exchanges and other regulatory bodies to proceed.

Industry Peers

VIJI FINANCE operates in India's competitive NBFC sector. Its peers include listed companies like Apollo Finvest India Ltd. and Smart Finsec Ltd. Larger players such as Cholamandalam Investment and Finance Company Ltd., Power Finance Corporation Ltd., and REC Limited are benchmarks for capital raising and operational scale in the industry.

Next Steps to Watch

• The outcome of the Extra-Ordinary General Meeting (EGM) scheduled for April 23, 2026.
• Approval status from stock exchanges and SEBI for the preferential issue.
• Details on warrant holders and how the raised funds will be utilized.
• Subsequent announcements regarding share allotment upon warrant exercise.