Penny stock which is a non-banking financial company(NBFC), gains marginally in the day’s trade after its board of directors approved raising funds by way of a rights issue. 

At 12:49 p.m. the shares of Banas Finance were trading at Rs. 21.25, down 0.93 percent from its previous day’s close price of Rs. 21.45 and its market capitalization is Rs. 102 Crores. It has delivered returns of 32 percent in a year and 43 percent in the last six months. 

As per the company’s filing on BSE, the board of directors of Banas Finance Limited has approved the raising of funds up to the extent of Rs. 48.50 Crores by way of rights issue to the existing shareholders of the company. 

The company’s revenue from operations grew 190 percent YoY from negative sales of Rs. 19.39 Crores in Q2FY23 to positive sales of Rs. 17.46 Crores in Q2FY24, accompanied by a loss of Rs. 21.22 Crores to a profit of Rs. 17.72 Crores. It has reported a debt-to-equity ratio of 0.04. 

It has reported a return on equity (ROE) of -35.64 percent and a return on capital employed (ROCE) of -65.31 percent. This was due to a loss of Rs. 97 Crores related to fair value changes. This led to total expenses increasing from Rs. 10.9 Crores to Rs. 120.47 Crores. 

Banas Finance Limited is a non-banking financial company(NBFC), it is engaged in the business of finance and share trading activity. The main object of the business is the purchase, leasing, factoring, and financing of hire-purchase of all kinds of machinery, equipment, and all types of transportation vehicles. 

Written by: Bharath K.S


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