What’s new

• Board approved material RPT with Pride Hotels for up to ₹95 cr.
• Borrowing limits raised to ₹200 cr (6x market cap).
• Both subject to postal ballot; cut-off date July 3, 2026.

Why it matters

For a ₹32 cr market cap NBFC with shrinking revenue and 4x debt/equity, a ₹95 cr related-party transaction is a bet-the-company move. Shareholders must approve a scale shift that could redefine governance and risk.

What we’re watching

• Details of the transaction with Pride Hotels (nature, terms).
• Shareholder approval outcome: postal ballot results.
• Impact on debt levels and balance sheet post-transaction.

The full read

SP Capital Financing's board has approved a related-party transaction with Pride Hotels for up to ₹95 crore (nearly three times its ₹32 crore market cap). Separately, borrowing limits have been raised to ₹200 crore, or over six times the market cap. Both need shareholder approval via postal ballot. For a company with trailing revenue down 55%, a negative PAT, and a 4.01x debt/equity ratio, this is a high-risk pivot. The transaction resets governance scrutiny: related-party deals of this magnitude require clear disclosure and minority protection. Shareholders should vote based on the full commercial rationale, which has yet to be detailed. Until then, the scale of the approved limits is the headline.

Primary source: BSE · NSE