LKP Finance Limited, a leading non-banking financial company (NBFC) with its registered office at Nariman Point, Mumbai, has announced a significant development regarding its proposed fundraising plan. The company disclosed to BSE Limited on 27th August 2025 that it has received in-principle approval from BSE for its Draft Letter of Offer relating to a proposed rights issue aggregating up to ₹126 crore.

This disclosure has been made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency and timely communication with stakeholders.

Details of the Rights Issue

The rights issue, which will aggregate up to ₹126 crore, is being offered to the eligible equity shareholders of the company. A rights issue is a corporate action in which existing shareholders are given the right to buy additional shares at a discounted price, usually in proportion to their existing holdings.

For LKP Finance, this move reflects a strategic capital-raising initiative that will strengthen its balance sheet, support future growth opportunities, and enhance liquidity. The company’s decision to go for a rights issue shows its focus on engaging its existing shareholders for funding rather than depending solely on external financing options.

The Draft Letter of Offer (DLOF) submitted by LKP Finance was reviewed by BSE Limited, which granted its in-principle approval on 26th August 2025. This marks a key milestone in the rights issue process, bringing the company one step closer to launching the offer.

Significance for Shareholders

For shareholders, this rights issue presents an opportunity to increase their stake in the company at a preferential price. Rights issues are generally priced at a discount to the prevailing market price, thereby providing an attractive entry point for existing investors.

Since the offer is being made only to eligible equity shareholders, it ensures that current stakeholders are prioritised and given the first right to participate in the fundraising. Such measures are typically viewed positively by investors as they help in value creation while avoiding dilution of their holdings by external investors.

Regulatory Compliance and Transparency

By filing this update with the stock exchange under Regulation 30 of SEBI (LODR) Regulations, 2015, LKP Finance has demonstrated adherence to the highest standards of corporate governance. The company has also attached the approval letter received from BSE dated 26th August 2025, ensuring stakeholders have complete visibility on the development.

This step aligns with the SEBI framework which mandates listed companies to keep investors informed about all material corporate actions, especially fundraising activities.

Strategic Outlook for LKP Finance

The ₹126 crore rights issue is expected to provide fresh capital that can be deployed towards business expansion, strengthening capital adequacy, and meeting long-term financing needs. With the NBFC sector in India witnessing increasing demand for credit across retail and corporate segments, LKP Finance is positioning itself to capture new opportunities.

The additional capital will not only help the company manage risk more effectively but also boost investor confidence. For long-term shareholders, participating in the rights issue could enhance potential returns, especially if the capital raised is deployed in high-growth segments.

Conclusion

The in-principle approval from BSE for the ₹126 crore rights issue marks an important milestone for LKP Finance Limited. The rights issue, to be offered to eligible equity shareholders, highlights the company’s focus on shareholder participation and transparent governance.

As the next steps unfold, including finalisation of the offer price and timeline, investors will be closely watching the development. This fundraising move has the potential to strengthen the company’s capital base and pave the way for future growth, reinforcing LKP Finance’s position in the NBFC sector.

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