Beryl Securities to raise ₹2.98 cr via preferential issue, diluting 17.5% of equity
The nano-cap NBFC will issue 1,295,635 shares at ₹23 each to promoters and public investors; shareholder nod sought at AGM on 25 Aug.
— 1 earlier story on Beryl Securities Ltd. →What's new
- Board approves preferential allotment of 1,295,635 shares at ₹23 each, including ₹13 premium.
- Allottees include ten promoter entities and twenty-nine public investors.
- AGM called for 25 Aug 2026 to seek shareholder ratification; relevant date fixed at 24 Jul 2026.
Why this matters
For a ₹17-crore market-cap company, a ₹2.98-crore raise equals 17.5% dilution. The premium over face suggests promoter confidence, but with ₹0 net profit in the last quarter, the infusion is a bet on future growth. Shareholders will decide if they buy the story.
What we're watching
- Outcome of shareholder vote at the 25 Aug AGM – the issue is conditional on their approval.
- Share price movement around the relevant date (24 Jul) – whether the ₹23 price is a discount to market.
- Use of funds: Beryl's trailing ROE is just 2.6%; this capital could fund lending or operations.
The full read
The board approved a preferential issue of 1,295,635 shares at ₹23 each to raise ₹2.98 crore. The dilution is steep. For a nano-cap NBFC with a market cap of ₹17 crore, the offer represents 17.5% of its equity. Ten promoter entities and twenty-nine public investors are taking part, signaling insider backing. Yet the company's latest quarter showed just ₹2 crore in revenue and zero profit, and its trailing ROE stands at 2.6%. The infusion, if approved by shareholders at the AGM on 25 August 2026, could fund lending growth, but the dilution pressure is immediate. The test now is whether Beryl can deploy this capital into loans that generate returns above 2.6%.
Questions answered
- How many shares are being issued and at what price?
- Beryl will issue 1,295,635 equity shares at ₹23 per share, including a premium of ₹13. The total proceeds are ₹2.98 crore.
- Who are the allottees in this preferential issue?
- The issue includes ten promoter-group entities and twenty-nine public investors. The promoter group's participation signals alignment with minority holders.
- How does this affect existing shareholders?
- The issue adds 1,295,635 new shares, diluting current holdings by roughly 17.5% if fully subscribed. Earnings per share will face pressure unless the raised capital generates proportional returns.
- What is the company's financial health?
- Beryl is a nano-cap NBFC with a market cap of ₹17 crore, trailing P/E of 36.4, ROE of 2.6%, and near-zero net profit in the March 2026 quarter. The raise may strengthen its balance sheet.
- When will shareholders vote on this?
- The issue is subject to approval at the 32nd annual general meeting scheduled for 25 August 2026. The board has already fixed 24 July 2026 as the relevant date for pricing.
Beryl Securities Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on BERYLSE →- 28 Jul 2026 · 5:40 PM IST Beryl Securities to raise ₹2.98 cr via preferential issue, diluting 17.5% of equity
- 15d ago Beryl Securities board to mull preferential issue on July 20