Centrum Capital Limited, a well-established financial services group, has taken a significant step in strengthening its capital base by completing a preferential allotment of 4,35,46,454 equity shares at a price of ₹34.38 per share. This move has raised a total of ₹149.71 crore, further reinforcing the company’s financial position and funding capabilities. The allotment was approved by the Fund Raising Committee on August 28, 2025, following the necessary shareholder and stock exchange approvals.

The process of a preferential issue is one of the most commonly used fundraising routes by listed companies, enabling them to issue fresh equity shares to select investors. In this case, Centrum Capital sought and received approval from its shareholders during its 47th Annual General Meeting held on August 8, 2025. Following this, both the BSE Limited and the National Stock Exchange of India Limited (NSE) granted their in-principle approvals on August 13, 2025, paving the way for the allotment.

The company has now confirmed that a total of 48 investors participated in this preferential issue. The detailed list of allottees includes domestic funds, LLPs, individual investors, HUFs, and institutional entities. Some of the prominent participants include Negen Undiscovered Value Fund, Prisach Consultants LLP, LC Pharos Multi Strategy Fund, Neo Special Credit Opportunities Fund, and Kitara India Growth Fund, among others. Each of these investors has been allotted varying amounts of equity shares, reflecting their confidence in Centrum’s business strategy and future outlook.

The largest allotment was made to Negen Undiscovered Value Fund, which received 72.71 lakh shares, followed by Prisach Consultants LLP with 58.17 lakh shares. Other significant investors include LC Pharos Multi Strategy Fund and Neo Special Credit Opportunities Fund, both allotted 43.63 lakh shares each, as well as Kitara India Growth Fund, which received 37.81 lakh shares.

This preferential allotment has resulted in a notable increase in Centrum Capital’s paid-up equity share capital, which has now risen from ₹41.60 crore (41,60,32,740 shares of ₹1 each) to ₹45.95 crore (45,95,79,194 shares of ₹1 each). Importantly, the newly issued equity shares will rank pari-passu with the existing equity shares of the company, ensuring equal rights for all shareholders with respect to dividends, voting, and other entitlements.

The issuance price of ₹34.38 per share was determined in line with the applicable guidelines under SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, ensuring full compliance with regulatory norms.

From a strategic standpoint, this fundraise is expected to provide Centrum Capital with fresh liquidity that can be deployed for strengthening its balance sheet, supporting growth initiatives, and furthering its investment activities. Preferential allotments often serve as a strong signal of investor confidence, particularly when a diverse group of institutional and retail investors participates in such fundraising exercises.

For Centrum Capital, which operates in the areas of wealth management, investment banking, and retail financial services, this infusion of capital is likely to boost its operational capacity at a time when the Indian financial sector is witnessing robust growth.

The detailed disclosure filed with stock exchanges under Regulation 30 of the SEBI (LODR) Regulations, 2015, and in accordance with the SEBI circular on disclosure requirements, provides full transparency about the process. The company has also confirmed that the application for listing and trading approval of these newly allotted equity shares will be made in due course, after which the shares will become available for trading on both NSE and BSE.

This preferential allotment also marks another important step in Centrum’s corporate journey, following several strategic initiatives taken over the past few years. The company’s approach of raising funds through structured and compliant channels reflects its commitment to maintaining corporate governance standards and aligning with investor interests.

Looking at the broader implications, preferential issues are often considered a faster and more efficient way of raising capital compared to public issues or rights issues. They allow companies to selectively bring in investors who share long-term confidence in the company’s vision. In Centrum’s case, the diversity of investors indicates a strong market sentiment and trust in the company’s leadership and strategic plans.

Going forward, this capital infusion of nearly ₹150 crore is expected to support Centrum Capital’s expansion plans, strengthen its balance sheet, and potentially improve its credit profile. As the financial services sector continues to evolve with digitalisation, regulatory reforms, and rising demand for capital markets solutions, Centrum’s strengthened equity base positions it well to capitalise on emerging opportunities.

In conclusion, the preferential allotment of 4.35 crore shares at ₹34.38 per share, raising ₹149.71 crore, represents a milestone fundraising exercise for Centrum Capital Limited. With shareholder and exchange approvals secured, 48 investors participating, and the company’s capital base significantly expanded, this development underscores investor confidence and the company’s proactive approach to growth financing.

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