Esaar India Rights Issue 2026 Review by Dilip Davda

Esaar India Ltd., (EIL) is a Non-Banking Financial Company ("NBFC") registered with the Reserve Bank of India ("RBI") and is engaged in the business of lending and financing. The Company does not undertake any manufacturing, trading or other activities involving the purchase or sale of goods and, accordingly, does not have an operating cycle comparable to that of manufacturing or trading entities.

Consequently, the conventional holding levels in respect of inventories, trade receivables and trade payables, expressed in terms of days, are not applicable to the Company's business and cannot be meaningfully computed. The Company's principal earning assets comprise loans and advances, which are governed by contractual repayment schedules, credit policies and the prudential norms prescribed by the RBI, rather than by commercial credit terms applicable to the sale or purchase of goods.

The Company's liquidity position and funding requirements are managed through its Asset Liability Management ("ALM") framework in accordance with the applicable RBI guidelines. EIL continuously monitors the maturity profile of its assets and liabilities to ensure adequate liquidity and compliance with the regulatory requirements prescribed by the RBI. Accordingly, the holding levels in respect of inventories, trade receivables and trade payables have been disclosed as "Not Applicable."

Accordingly, the Company proposes to utilize an amount of up to Rs. 46.20 cr. from the Net Proceeds towards augmentation of its long-term capital base and resources to support the funding requirements of its lending business. The proposed utilization is expected to facilitate the growth of the Company’s loan portfolio and assets under management, including deployment of funds for onward lending in the ordinary course of business. The offer document is silent on its employees’ strength data.

The company is coming out with its Rights Issue (RI) of 59964667 equity shares of Rs. 10 each at par to mobilize Rs. 59.96 cr. The RI has already opened for subscription on September 02, 2026, and will close on September 11, 2026. The company is offering RI in the ratio of 44 for 15 to its eligible stakeholders as of the record date of August 25, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 1.80 cr. for this RI process, from the net proceeds, Rs. 46.20 cr. for augmenting the capital base, and Rs. 11.96 cr. for general corporate purposes.

The RI is solely lead managed by the company itself, and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue. Grow House Wealth Management Pvt. Ltd. Is the advisor to the issue.

Post-RI, company’s current paid-up equity capital of Rs. 20.44 cr. (20442500 equity shares) will stand enhanced to Rs. 80.41 cr. (80407167 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 80.41 cr.

On the financial performance front, for the last three fiscals, the company has posted total revenue / net profit/ - (loss), of Rs. 6.37 cr. / Rs. 0.83 cr. (FY24), Rs. 14.77 cr. / Rs.  – (1.56) cr. (FY25), Rs. 40.71 cr. / Rs. 11.14 cr. (FY26). Its NAV stood at Rs. 19.35 as of March 31, 2026. The company marked loss on higher income for FY25.

The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy.

The scrip last closed on cum-right basis at Rs. 13.19 on August 24 2026, and opened on an ex-right basis at Rs. 11.35 on August 25, 2026. Since then, it has marked a high/low of Rs. 13.53 / Rs. 11.01. The scrip last closed at Rs. 13.53 as of September 04, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 13.53 / Rs. 6.28.

The promoters’ holding has been constant at 10.04%L for the last two quarters ended on June 30, 2026. The counter is well maintained above the RI price to tempt investors.