Nexome Capital Markets Approves ₹22.04 Cr Rights Issue at ₹75 Per Share

Nexome Capital Markets will issue 29,38,500 fully paid-up equity shares at ₹75 each, raising ₹22.04 crore.
The company's record date for the rights issue is March 5, 2026.

Reader Takeaway: Rights issue to boost capital for investments; dilution and past losses remain key investor concerns.

What just happened (today’s filing)

Nexome Capital Markets Limited's Rights Issue Committee has given the green light for a rights issue, aiming to raise up to ₹22.04 crore. The capital will be raised through the issuance of 29,38,500 fully paid-up equity shares at an issue price of ₹75 per share, including a premium of ₹65 per share over the face value of ₹10.

The proposed rights issue follows a ratio of 1 Rights Equity Share for every 2 Equity Shares held by eligible shareholders. The record date to determine entitlement has been fixed for March 5, 2026. The rights issue period will commence on March 13, 2026, and close on March 23, 2026.

This capital raise will increase the company's outstanding equity shares from 58,77,000 to 88,15,500 post-issue, indicating a dilution of existing shareholding percentages.

Why this matters

The move aims to strengthen Nexome Capital's capital base, providing funds for investments in shares and securities, mutual funds, and general corporate purposes. However, the issuance will dilute the ownership stake of existing shareholders. This fundraising occurs at a time when the company has reported significant financial challenges.

The backstory (grounded)

Nexome Capital Markets Limited, formerly SMIFS Capital Markets Limited, has recently navigated a challenging financial period. In Q3 FY26, the company reported a consolidated net loss of ₹100.02 crore, a stark contrast to the ₹24.82 crore profit in the same quarter last year, driven by an 78.9% revenue decline. For FY2025, revenue from operations plummeted by 81.5%, and Profit After Tax (PAT) saw a 51.6% decrease. Total borrowings also escalated dramatically in FY2025.

Adding to concerns, promoter holding has seen a reduction, and the company has a history of regulatory scrutiny, including past SEBI penalties and a previous Certificate of Registration renewal rejection that was later set aside by SAT.

What changes now

• Increased Capital Base: The company will receive approximately ₹22.04 crore, bolstering its financial resources.
• Shareholder Dilution: The issuance of 29,38,500 new shares will dilute the percentage ownership of existing shareholders.
• Expanded Share Count: Post-issue, the total outstanding shares will rise to 88,15,500 from 58,77,000.
• Revised Capital Structure: The rights issue will alter the company's capital structure.

Risks to watch

• Financial Performance: The company has reported significant losses and revenue declines, with a 'Strong Sell' rating from MarketsMojo highlighting weak financial trends.
• Shareholder Dilution: The rights issue will dilute existing shareholders' stakes, a concern given the current financial performance.
• Past Regulatory Issues: A history of SEBI penalties and scrutiny could be a point of vigilance for investors.
• Execution Risk: Successfully raising the full amount and effectively utilizing the funds to improve performance will be critical.

Peer comparison

Nexome Capital Markets operates in the merchant banking and investment banking niche within financial services. Its peers include larger entities like Bajaj Finance Ltd, Shriram Finance Ltd, and Jio Financial Services Ltd. These companies operate at a vastly larger scale, with market capitalizations in the hundreds of thousands of crores, compared to Nexome's market cap of approximately ₹50-53 crore. While these peers are in the broader financial services sector, their operational models and scale differ significantly from Nexome's specialized focus.

Context metrics (time-bound)

• Market Cap: Approximately ₹50-53 crore as of February 2026.
• Debt to Equity Ratio: Low at 0.04 (Consolidated).
• Return on Equity (ROE): Ranged between 0.52% and 1.81% over the last 3 years/TTM.
• P/E Ratio (TTM): Between 26.28 and 33.42 (as of February 2026).

What to track next

• Rights Issue Subscription: Monitor the subscription levels for the rights issue.
• Fund Utilization: Track how the ₹22.04 crore raised will be deployed.
• Financial Turnaround: Assess any improvements in the company's revenue and profitability following the capital infusion.
• Regulatory Compliance: Ensure adherence to all SEBI and exchange norms throughout the rights issue process.
• Shareholder Actions: Observe any significant buying or selling activity post-issue.