Banking/Finance
|
Updated on 15th November 2025, 1:59 PM
Author
Aditi Singh | Whalesbook News Team
Pro Fin Capital Services Ltd. has received a Letter of Intent from Hong Kong-based Excellence Creative Ltd for a potential 25% stake acquisition worth Rs 22 crore. This follows the company's robust Q2 FY26 performance, with net profit soaring over four-fold to Rs 13.37 crore and total income increasing five-fold. The board also approved a 1:1 bonus share issue, reflecting confidence in future growth.
â–¶
Pro Fin Capital Services Ltd. announced receiving a Letter of Intent (LOI) from Excellence Creative Ltd, a Hong Kong-based entity, expressing non-binding interest in acquiring up to 25% of the company's equity for Rs 22 crore. This LOI is subject to board approval, due diligence, and regulatory compliance.
The company reported exceptional financial results for the second quarter of FY26. Net profit surged by over 400% to Rs 13.37 crore from Rs 2.46 crore in the prior year's quarter. Total income also saw a significant jump, rising more than five-fold to Rs 44.62 crore from Rs 6.97 crore. For the first half of FY26, net profit reached Rs 15.91 crore, a 320% increase, with total income at Rs 55.14 crore.
Pro Fin Capital Services Ltd's Board also approved a 1:1 bonus share issue on October 10, 2025, a move intended to reward shareholders and signify confidence in the company's growth prospects.
Impact: The potential acquisition interest from an international entity and strong financial performance are significant positive catalysts. The bonus issue aims to boost liquidity and shareholder value. Together, these factors could lead to increased investor interest and potentially higher stock valuations.
Impact Rating: 8/10
Difficult Terms: * Letter of Intent (LOI): A document outlining a non-binding agreement between parties, signifying a serious intent to proceed with a transaction. * NBFC (Non-Banking Financial Company): A financial institution that provides banking services but does not hold a full banking license. They offer services like loans, credit, and investment products. * Bonus Issue: The issuance of additional shares to existing shareholders at no cost, usually in a specific ratio to their current holdings. * Due Diligence: A comprehensive review and audit of a potential investment or product to confirm all facts and details, often required before a significant transaction. * SEBI (Securities and Exchange Board of India): The regulatory body for the securities market in India. * RBI (Reserve Bank of India): India's central bank and regulatory body for the banking and financial system. * FEMA (Foreign Exchange Management Act): An Indian law that deals with foreign exchange management.