Capri Global Capital to raise up to ₹1,200 cr via rights issue

BL Mumbai Bureau | Updated on: May 22, 2022

Reports 102% year-on-year jump in Q4FY22 net profit

The Board of Capri Global Capital Ltd (CGCL) has approved the issuance of fully paid-up equity shares of the company for an amount not exceeding ₹1,200 crore by way of a rights issue to eligible equity shareholders.

For the purposes of giving effect to the rights issue, the detailed terms in relation to the issue, including but not limited to the issue price, rights entitlement ratio, record date, timing, and terms of payment will be determined and disclosed to the exchange in due course by the Board of Directors and/ or the Rights Issue Committee of the Board of Directors authorised in this regard, CGCL said in a stock exchange filing.

Further, the maximum funds that can be raised by way of issuance of securities for the financial year 2022-2023, in aggregate, shall not exceed ₹1,500 crore, as per the filing.

Jump in Q4 net profit

The non-banking finance company (NBFC) reported a 102 per cent year-on-year (y-o-y) jump in fourth-quarter net profit at ₹34.05 crore against ₹16.82 crore in the year-ago quarter.

Interest income rose 37 per cent y-o-y to ₹177.74 crore (₹129.72 crore in the year ago quarter). Fees and commission income soared to ₹20.69 crore (₹83.70 lakh). Net gain on derecognition of financial instruments stood at ₹15.84 crore (nil in the year-ago period).

Finance costs were up 17 per cent y-o-y to ₹64.45 crore (₹54.94 crore). Provision for impairment on financial instruments jumped about 84 per cent y-o-y to ₹42.56 crore (₹23.17 crore). Employee benefit expenses shot up about 88 per cent to ₹49.85 crore (₹26.54 crore). Other expenses rose 62 per cent to ₹19.26 crore (₹11.87 crore).

Spike in loans

Loans increased by 28 per cent y-o-y to stand at ₹4,577 crore as on March-end 2022 (₹3,564 crore as on March-end 2021). CGCL’s Board has recommended a final dividend of 50 paise per equity share of ₹2 each for the financial year ended March 31, 2022.

Meanwhile, the NBFC’s Board has approved the re-appointment of Rajesh Sharma as Managing Director of the company for a term of five years with effect from July 4, 2023. This is subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company.

Published on May 22, 2022
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