Please find attached the Corrigendum to EGM Notice dated 20.03.2025
Awaiting price reaction for this filing.
Manappuram Finance Limited has issued a corrigendum to its EGM notice dated March 20, 2025, ahead of the EGM scheduled for April 16, 2025. The corrigendum was prompted by NSE's request for additional clarifications on the proposed Preferential Issue of equity shares and warrants. The total issue size is approximately INR 4,384.94 crore, to be utilized as follows: INR 2,741 crore for investment in subsidiaries (capital expenditure, growth capital, and balance sheet strengthening), INR 1,243.94 crore for onward lending including non-gold loan business, and INR 400 crore for general corporate purposes. The funds will be received in tranches over 4-18 months due to the warrants component, with full utilization expected within 6 months of receiving all funds. All other contents of the original EGM notice remain unchanged.
This corrigendum provides greater clarity on the use of proceeds for the upcoming INR 4,385 crore preferential issue but represents a potential equity dilution for existing shareholders. Investors should review the detailed fund utilization plan before voting at the April 16 EGM, as approval will enable the company to raise growth capital and strengthen its subsidiaries.