Viji Finance has allotted 8.85 crore convertible share warrants to non-promoters, raising ₹6.195 crore upfront. The total issue size was revised down to ₹24.78 crore.

Viji Finance Completes Preferential Allotment, Secures ₹6.195 Crore Upfront

Viji Finance Limited has completed the preferential allotment of 8,85,00,000 convertible share warrants, raising ₹6.195 crore as an upfront subscription. The total issue size has been revised to ₹24.78 crore from the original ₹35.70 crore.

Reader Takeaway: Successful capital raise despite reduced size; monitor conversion and dilution.

What just happened

Viji Finance Limited announced on June 16, 2026, the completion of a preferential allotment of 8.85 crore convertible share warrants to non-promoter/other persons. An upfront subscription of ₹6.195 crore, representing 25% of the total warrant consideration, has been received.

Why this matters

This capital infusion provides Viji Finance with immediate funds and demonstrates investor commitment. However, the downward revision in the total issue size indicates that the company did not meet its full initial fundraising target. The conversion of these warrants in the next 18 months will lead to future equity dilution.

The backstory

The preferential allotment was approved by the Preferential Allotment Committee. Originally, the issue was proposed at ₹35.70 crore, but it was reduced to ₹24.78 crore due to the non-participation of three proposed investors who were to subscribe to 3.90 crore warrants.

What changes now

The company has successfully secured ₹6.195 crore in upfront cash. The remaining 75% of the consideration is payable upon the exercise of conversion rights by the warrant holders within 18 months. The allotment received in-principle approvals from BSE, NSE, and The Calcutta Stock Exchange.

Risks to watch

• Fundraising Shortfall: The reduction in the total issue size from ₹35.70 crore to ₹24.78 crore highlights a potential shortfall in the company's fundraising expectations.
• Lapse Risk: If warrant holders do not exercise their conversion rights within the 18-month period, the upfront subscription amount will be forfeited by the company.
• Equity Dilution: The future conversion of warrants into equity shares will dilute the existing shareholding.

Peer comparison

Information on peer company preferential allotments and fundraising activities was not available in the filing. Typically, such allotments are used by companies to fund expansion, working capital, or to reduce debt.

Context metrics (time-bound)

• Warrants Allotted: 8,85,00,000 units
• Upfront Subscription Received: ₹6.195 crore (25% of total consideration)
• Revised Total Issue Size: ₹24.78 crore
• Original Proposed Size: ₹35.70 crore
• Warrant Issue Price: ₹2.80 per warrant
• Conversion Period: 18 months

What to track next

Investors should closely monitor the exercise of conversion rights by the warrant holders within the next 18 months. The company's ability to meet its fundraising targets and manage potential equity dilution will be key factors to watch.