OBJECTIVE OF IPO

The Offer includes a Fresh Issue of Equity Shares worth ₹7,500 million by the Company and an Offer for Sale of Equity Shares worth ₹4,500 million by the Promoter Selling Shareholders, with each seller receiving their share of proceeds after deducting expenses and taxes.

The Company plans to use the Net Proceeds to strengthen its capital base for future growth requirements. Additionally, it anticipates advantages such as listing benefits, enhanced brand reputation, and the creation of a public market for its Equity Shares in India.

As an NBFC, registered with the RBI, offering Secured MSME Loans and Loans against Gold the company is subject to regulations relating to capital adequacy, determining minimum amount of capital must held as a percentage of the risk-weighted assets on balance sheet and of the risk adjusted value of off-balance sheet items.

As per capital adequacy norms by RBI, Company is required to have a regulatory

• Minimum Capital to Risk Weighted Assets Ratio (“CRAR”) of 15% consisting of Tier I and Tier II capital.
• Always maintain a Tier I capital of 10%.

As of March 31, 2022

• Company’s CRAR was 26.21% of which the Tier I capital was 25.90 %

December 31, 2022,

• The company’s CRAR was 33.23% of which the Tier I capital was 33.00%.

The Net Proceeds are proposed to be utilized for increasing capital base. The company anticipates that the Net Proceeds will be sufficient to satisfy Company’s Tier- I capital requirements.

The object of the Issue is to augment the capital base of the Company. Accordingly, It intend to utilize the Net Proceeds to meet future capital requirements, which are expected to arise out of growth of our business and assets.

Company will temporarily invest the Net Proceeds in deposits in one or more scheduled commercial banks included in the Second Schedule of Reserve Bank of India Act, 1934 as may be approved by the Board.