MFS Intercorp Limited has informed the stock exchanges that it has received in-principle approval from BSE Limited for raising funds through the issuance of warrants on a preferential basis. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates timely reporting of material corporate events.

The company communicated the development through an official letter dated February 20, 2026, addressed to the Listing Department of BSE Limited at Phiroze Jeejeebhoy Towers, Mumbai.

This approval marks a significant step in the company’s fundraising plan and reflects regulatory clearance at a preliminary level for proceeding with the proposed preferential issue.

Understanding the In-Principle Approval

An in-principle approval from a stock exchange is a formal acknowledgement that the proposed corporate action meets regulatory requirements at a preliminary stage. It allows the company to move forward with the issuance process, subject to final compliance and procedural steps.

In this case, BSE Limited issued the approval through its letter dated February 19, 2026. The company clarified that the approval is in continuation of its earlier communication dated January 29, 2026, along with a corrigendum submitted on February 16, 2026.

These prior submissions were made to ensure compliance with:

• The Companies Act, 2013

• Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

• Applicable provisions under SEBI LODR Regulations

The structured disclosure pattern demonstrates the company’s adherence to regulatory norms and transparency requirements.

What Is a Preferential Warrants Issue?

A preferential issue of warrants is a method through which a listed company raises capital by issuing convertible instruments to select investors. Warrants give the holder the right, but not the obligation, to subscribe to equity shares at a predetermined price within a specified time frame.

Key features of preferential warrants include:

• Issued to select investors, not to the general public

• Conversion into equity shares at a future date

• Pricing governed by SEBI regulations

• Subject to lock-in conditions

This method is often used by companies to raise funds quickly while offering investors potential upside if the share price appreciates.

Regulatory Framework Governing the Issue

The proposed fundraise falls under multiple regulatory frameworks:

1. Companies Act, 2013

The Companies Act governs corporate approvals, shareholder resolutions, and board procedures related to capital raising.

2. SEBI ICDR Regulations, 2018

Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 specifically deals with preferential issues. It outlines:

• Pricing formula

• Lock-in requirements

• Disclosure norms

• Eligibility criteria for allottees

3. SEBI LODR Regulations, 2015

Under Regulation 30, listed entities must disclose material events that may impact investors’ decisions. The company has complied with this requirement by promptly informing BSE.

Importance of the Fundraising Plan

Raising funds through a preferential warrants issue can serve multiple strategic purposes, such as:

• Strengthening working capital

• Funding expansion plans

• Reducing debt

• Supporting new business initiatives

• Improving liquidity position

While the company has not publicly detailed the specific utilisation plan in this communication, such fundraising steps generally aim to enhance financial flexibility and growth prospects.

Corporate Details of the Company

MFS Intercorp Limited is a listed entity with the Corporate Identification Number L27209DL1986PLC254555.

Registered Office:

Office No. 5, 1st Floor, Block B, Pocket 3, Sector 34, Rohini, New Delhi – 110042.

Corporate Office:

109, First Floor, Arista, Bodakdev, Ahmedabad, Gujarat – 380054.

The communication was signed by Kiran Vishwakarma, Director of the company, holding DIN: 10526319. The letter was issued from Ahmedabad on February 20, 2026.

Market Implications

Corporate fundraising announcements typically attract investor attention. While in-principle approval does not immediately change the capital structure, it signals upcoming equity dilution upon conversion of warrants.

Investors generally evaluate such announcements based on:

• Pricing of warrants

• Identity and credibility of proposed allottees

• Intended use of funds

• Long-term business strategy

If utilised effectively, the raised funds can contribute positively to growth and profitability. However, dilution impact and execution capability remain key considerations.

Transparency and Compliance

The company’s disclosure reflects adherence to corporate governance standards. By informing the exchange under Regulation 30, MFS Intercorp Limited ensures transparency and equal access to information for all shareholders.

Such regulatory discipline is essential in maintaining investor confidence and market credibility.

What Happens Next?

Following in-principle approval, the company must:

1. Complete necessary procedural formalities.

2. Obtain shareholder approval, if required.

3. Finalise allotment details.

4. Issue warrants to identified investors.

5. Ensure compliance with post-issue reporting norms.

Only after these steps are completed will the warrants be formally allotted and subsequently eligible for conversion into equity shares within the specified timeframe.

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