What’s new

• Viji Finance allotted 8.85 cr convertible warrants at ₹2.80 each, raising ₹24.78 cr.
• Issue downsized from 12.75 cr warrants as three investors backed out.
• 19 non-promoter allottees participated; upfront subscription of ₹6.19 cr received.

Why it matters

For a ₹56-cr market cap NBFC, the ₹24.78 cr infusion roughly doubles the equity base. But the drop of three investors accounting for 3.90 cr warrants signals weak confidence. The resulting dilution of over 60% will pressure earnings per share unless the capital is deployed effectively.

What we’re watching

• Whether the warrants get converted within 18 months, determining actual capital infusion.
• Deployment of proceeds to boost lending or acquisitions.
• Market reaction given the reduced issue and dilution.

The full read

Viji Finance, a nano-cap NBFC with a ₹56-cr market cap, just raised ₹24.78 crore via convertible warrants. But the headline number masks a reduction: the issue was trimmed from ₹35.70 crore because three investors walked away from 3.90 crore warrants. The 8.85 crore warrants, priced at ₹2.80 each, carry an upfront payment of ₹6.19 crore and the balance due within 18 months. Nineteen non-promoter allottees stepped in, but the dropped investors are a confidence crack. Post-conversion, dilution exceeds 60%, a steep price for capital. For a company with trailing ROE of just 0.8%, the deployment of these funds will determine whether this raise is a lifeline or a burden.

Primary source: BSE · NSE