Minolta Finance Rights Issue 2026 Review
Preface
The company is coming out with its Rights Issue for which is has fixed a record date as July 17, 2026, and the offer document is dated June 30, 2026, but the offer document with designated exchanges were uploaded only this noon i.e., on July 29, 2026. This RI is opening on July 30, 2026. Now a days, such type of things is seen quite often. Its financial performance has been lack-luster and 4 fold increase in its post-RI paid up equity will have its servicing issue.
About Company
Minolta Finance Ltd., (MFL) is a non-Deposit taking Non-Banking Financial Company (NBFC) registered with RBI to carry on the NBFI activities under Section 45IA of the Reserve Bank of India Act, 1934 bearing Registration no. 12.00041 dated February 26, 1998. It provides wide range of loan products to cater to diverse customers. The products include Personal Loans, Home Loans, Business Loans, Gold Loans, Loan against property, Microfinance Loan, Two-wheeler loans, used car loans, Education loans, MSME Loans, etc.
The company also offers Trade Finance Loans, Bill Discounting, Oan against share, Loan against gold, loan against mortgage property, vehicle funding, unsecured personal loans, etc. Minolta is headquartered in Kolkata and does not operate through different business locations. It has headquartered at Kolkata and operate through 2 business locations including corporate office, branches, Authorized Person located across India.
MFLās branches are the retail locations where it offers its services face-to-face and automated services to customers. It is an independent profit center. The company develops branches in line with its growth strategy keeping in mind the overall market condition. Its business locations also include intermediaries or its "Business Associates", who deliver a standard quality of service offering on the basis of a pre-determined revenue sharing ratio for the business generated through them. As of the date of this offer document, it had 5 employees on its payroll.
Issue Details / Capital History
The company is coming out with its Rights Issue (RI) of 400000000 equity shares of Re. 1 each at a fixed price of Rs. 1.20 per share to mobilize Rs. 48.00 cr. The RI opens for subscription on July 30, 2026, and will close on August 17, 2026. The company is offering RI in the ratio of 4 for 1 to its eligible stakeholders as of the record date of July 17, 2026. The company is asking for full application money for number of shares applied. Post allotment, RI shares will be listed on BSE and CSE. The company is spending Rs. 1.50 cr. for this RI process, from the net proceeds, it will utilize Rs. 46.50 cr. for augmenting its capital base.
The RI is solely lead managed by the company itself, and Skyline Financial Services Pvt. Ltd. is the registrar to the issue.
Post-RI, companyās current paid-up equity capital of Rs. 10.00 cr. will stand enhanced to Rs. 50.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 60.00 cr.
On the financial performance front, for the last four fiscals, the company has posted total revenue / net profit/ - (loss), of Rs. 0.60 cr. / Rs. 0.05 cr. (FY23), Rs. 0.76 cr. / Rs. 0.05 cr. (FY24), Rs. 1.02 cr. / Rs 0.01 cr. (FY25), Rs. 11.97 cr. / Rs. ā (1.43) cr. cr. (FY26). While is posted minuscule financial performances from FY23 to FY25, it marked boosted top lines with big loss, that is really surprising. Financial instruments impairment is attributed to this performance with big slide. Its total debt of Rs. 19.11 cr. as of March 31, 2026 raise alarm and its NAV stands at Rs. 0.93 as of the said date.
Dividend Policy
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
Scrip Performance: Based On Bse Website Data: Scrip Code: 532164 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 1.39 on July 16 2026, and opened on an ex-right basis at Rs. 1.23 on July 17, 2026. Since then, it has marked a high/low of Rs. 1.29 / Rs. 1.03. The scrip last closed at Rs. 1.18 as of July 29, 2026. For the last 52 weeksā it has posted a high/low of Rs. 1.54 / Rs. 0.90. The counter is currently under GSM: Stage 2.
The promotersā holding has been constant at 3.59% for the last three quarters ended on June 30, 2026. The counter is well maintained above the par value to tempt investors, but its trading below the RI price.
Conclusion
MFL is RBI registered NBFC providing financial services to its clients. The company posted lack-luster financial performance for the reported periods. Its big loss on higher income for FY26 is highly surprising. Based on its recent financial data, the RI appears exorbitantly priced. There are few anomalies in the offer documents. Four fold jump in its post-RI paid-up capital may creat its servicing issue. There is no harm in staying away from this pricey and dicey RI.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
