U. Y. Fincorp Board Approves ₹187.17 Crore Fund Raise via Preferential Issue

Key numbers

Market Cap	₹574.71 CrNBFC Sector
P/E Ratio	9.28Sector: 19.76
1Yr Price Change	101%Strong Performer
Deal value	₹187.17 Cr
Share of market cap	32.6%

Key highlights

• Total fund raise of ₹187.17 crore through a combination of equity shares and convertible warrants
• Issuance of 5.21 crore equity shares at ₹24.40 each, aggregating to ₹127.17 crore
• Issuance of 2.45 crore convertible equity warrants at ₹24.40 each, totaling ₹59.99 crore
• Issue price includes a premium of ₹19.40 per unit over the face value of ₹5
• Funds allocated to 136 non-promoter investors and 3 promoter-group entities

Preferential Issue Structure and Pricing

U. Y. Fincorp's board has cleared the issuance of up to 2,45,90,000 convertible equity warrants and 5,21,20,000 equity shares on a preferential basis.

Both instruments are priced at ₹24.40 per unit, representing a significant premium over the face value of ₹5. The warrant issue, valued at ₹59.99 crore, is targeted at three promoter-group entities: Deepak Kothari, Udai Kothari, and Dipti Deepak Kothari. Meanwhile, the equity share component, totaling ₹127.17 crore, is distributed across 136 non-promoter investors.

This massive equity injection comes at a time when the company's market capitalization stands at ₹574.71 crore, indicating a deal size equivalent to 32.6% of its total market value.

Conversion Terms and Investor Participation

• Warrants are convertible into equity shares on a 1:1 basis within 18 months of allotment
• Full payment of the issue price is required before exercising the warrant conversion option
• Resulting equity shares will be subject to statutory lock-in periods as per SEBI ICDR Regulations
• The warrant allotment is concentrated within the promoter group, with Udai Kothari set to hold 19.99% post-issue
• The equity share tranche includes 136 non-promoter entities, broadening the institutional and individual investor base

Contextual Growth and Financial Trajectory

The fund raise follows a period of aggressive financial growth for U. Y. Fincorp.

In the quarter ended June 30, 2026, the company reported an operating revenue of ₹72.51 crore, a massive 230.6% increase compared to the same period the previous year. Net profits also surged by 228.7% to ₹19.62 crore. This capital infusion follows a history of fundraising attempts, including a previously approved ₹50 crore Qualified Institutions Placement in July 2025 and a ₹300 crore QIP proposal in February 2025.

The current move aligns with the company's expanding digital lending footprint via GrowU.Money, which reached a ₹1 crore monthly disbursement run rate in March 2025.

What to watch next

• Extraordinary General Meeting (EGM) to seek shareholder approval for the preferential issue
• Receipt of in-principle approvals from BSE and NSE for the proposed issuance
• Release of Q2/H1 FY27 unaudited financial results scheduled for November 2, 2026
• Monitoring of conversion milestones for the 2.45 crore warrants over the next 18 months

U. Y. Fincorp · financial snapshot

Share price	₹30.21
Market capitalisation	₹574.71 Cr
Revenue (annual)	₹161.77 Cr
Net profit (annual)	₹48.28 Cr
Revenue (latest quarter)	₹72.51 Cr+3.00% vs previous quarter
Net profit (latest quarter)	₹19.62 Cr+12.49% vs previous quarter
P/E (TTM)	9.28×Sector 19.76×
Promoter holding	71.5%+0.12% QoQ
FII holding	0.09%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.