Acquirers Launch ₹97 Cr Open Offer for Loss-Making Purple Finance

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AuthorSatyam Jha|Published at:
Acquirers Launch ₹97 Cr Open Offer for Loss-Making Purple Finance
Overview

Allied Commodities Private Limited and Intellect Stock Broking, acting as Persons Acting in Concert, have launched a ₹97.06 crore open offer for Purple Finance Limited. They aim to acquire up to 26% of the equity at ₹55 per share. While the acquirers demonstrate financial strength, Purple Finance has consistently reported substantial net losses despite growing revenues. The acquisition is heavily contingent on obtaining prior approval from the Reserve Bank of India (RBI) for the change in control of the NBFC.

🟢 SCENARIO A: For Earnings, Buybacks, or Financial Updates

📉 The Financial Deep Dive

An Open Offer has been launched by Allied Commodities Private Limited and Intellect Stock Broking Limited (PACs) for Purple Finance Limited, seeking to acquire up to 26% of the voting share capital at ₹55.00 per share, aggregating to a maximum consideration of ₹97.06 crore.

The target company, Purple Finance Limited, presents a mixed financial picture. While its total revenue has seen a significant upward trajectory, escalating from ₹256.08 Lakhs in FY2023 to ₹3,066.43 Lakhs in the nine months ended December 31, 2025, it has consistently posted substantial net losses. The net loss stood at ₹645.84 Lakhs for the nine months ended December 31, 2025, and ₹1,554.82 Lakhs for FY2025, indicating persistent operational challenges.

In contrast, the acquirers appear financially robust. Allied Commodities Private Limited reported a profit of ₹673.99 Lakhs for the nine months ended December 31, 2025, and Intellect Stock Broking Limited recorded a profit of ₹1,117.42 Lakhs in the same period. Both entities show growing income and net worth, underscoring their capacity to fund the open offer from their own resources without relying on bank borrowings. Financial arrangements include a cash escrow of ₹2.5 crore and a demat escrow holding securities valued at ₹22.47 crore (net of margin).

Furthermore, Purple Finance's Board approved the issue of 1,26,00,000 convertible warrants at ₹55 per warrant to the acquirers and non-promoters, signalling potential further capital infusion and commitment from the acquirer's side even before the open offer concludes.

🚩 Risks & Outlook

The primary risk for this transaction is regulatory. The open offer is contingent upon receiving prior approval from the Reserve Bank of India (RBI) for the change in management/joint control of Purple Finance, which operates as an NBFC. The acquirers retain the right to withdraw the offer if statutory approvals are refused or not obtained. Willful delays in approvals could lead to the forfeiture of funds in the escrow account, presenting a significant execution risk. Investors should monitor the RBI approval timeline and any communication from the acquirers regarding regulatory progress.

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