NBFCs are boosting economic activity, contributing 29.1% of India’s lending. Advik Capital intends a rights issue to boost its three-year stock return to 521%. Over 29% of GDP comes from NBFCs, which are vital to SMEs…
The NBFC sector is quite positive as economic activity rises. The sector is vital to economic growth. The Reserve Bank of India said that NBFCs’ share of total credit extended to the economy rose from 16.4% in December 2018 to 29.1% in February 2023.
Advik Capital, a renowned NBFC, announced plans to assign the rights issue. A listed firm allows its shareholders to buy additional shares directly from the company at a discount in a rights-share offering.
“In accordance with the Basis of Allotment finalised in consultation with Designated Stock Exchange, i.e. BSE Limited, Merchant Bankers, and Registrar to the Issue, the Rights Issue Committee has approved the allotment of 20,79,60,320 fully paid-up Rights Equity shares of the face value of Re 1 each at a price of Rs 2.40 per Rights Equity share (including a premium of Rs 1.40 per share) to the eligible applicants,” said a BSE filing.
The BSE-listed NBFC company has returned 521% to stockholders in the past three years, according to exchange data.
MSMEs, which account for over 29% of GDP, depend on NBFCs for lending. Additionally, it accounts for 50% of the country’s exports.
NBFCs are expected to grow 18.5% between 2021 and 2026 due to solid small company loan disbursements, according to Research and Markets. RBI and SEBI regulate NBFCs.
Conclusion
According to the Reserve Bank of India, the NBFC sector’s contribution to the GDP rose from 16.4% in December 2018 to 29.1% in February 2023. Advik Capital will finish the rights issue share allotment, a corporate action where a listed firm asks existing shareholders to buy more shares at a discount. The rights issue committee approved 20,79,60,320 fully paid-up Rights Equity shares at Rs 2.40 per share (with a Rs 1.40 premium). The BSE-listed NBFC company has returned 521% to stockholders in three years. MSMEs depend on NBFCs for lending, contributing 29% to GDP and 50% of exports. Research and Markets expects NBFCs to grow 18.5% between 2021 and 2026. RBI and SEBI regulate NBFCs.
