Viji Finance Approves ₹35.7 Crore Warrant Issue

Viji Finance Limited's board of directors approved a plan on March 24, 2026, to raise up to ₹35.70 crore by issuing 12,75,00,000 warrants. Each warrant, priced at ₹2.80, will be convertible into one equity share. The proposal awaits shareholder approval at an upcoming Extra-Ordinary General Meeting (EGM).

The capital infusion is intended to strengthen the company's financial resources. Upon conversion, the new shares will increase Viji Finance's outstanding equity, potentially leading to dilution for existing shareholders. The funds raised could be used for business growth, debt reduction, or operational needs. The ₹2.80 price per warrant will be paid in two tranches: upon subscription and at the time of exercising the warrants.

Viji Finance, a non-banking finance company (NBFC) operating since 1994, is a micro-cap entity with a market capitalization typically around ₹40-43 crore. In December 2025, the company increased its authorized share capital from ₹18 crore to ₹30 crore, signaling plans for future capital management.

For the third quarter of FY26, Viji Finance reported a standalone net profit of ₹94.22 Lakhs, a significant turnaround from a loss in the previous year's comparable period. Standalone revenue for the quarter stood at ₹159.26 Lakhs. As of December 31, 2025, the company's debt-to-equity ratio was 55.1%.

Despite reporting profits, Viji Finance has not paid dividends. Financial assessments over the past three years show a low return on equity of 1.79%, and some analyses categorize it as a 'below average quality company'. A key risk associated with the warrant issuance is the potential forfeiture of the initial payment by allottees if they do not exercise their warrants within 18 months of allotment. This could impact its capitalization plans.

Investors will be closely monitoring the outcome of the upcoming EGM, the successful completion of the warrant issuance, and how Viji Finance deploys the newly raised capital. The rate at which allottees exercise their warrants within the 18-month conversion period will also be a key metric to track. The company operates in the NBFC sector alongside peers such as G D L Leasing and Finance Ltd. and Credent Global Finance Ltd., facing higher volatility typical of micro-cap companies.