Singapore-Based FII-Backed Stock In Focus On Divestment of 100% Stake In Subsidiary

With a market valuation of around Rs 285 Cr, LKP Finance Limited is a small-cap financial services firm. The company is in the financing and trading of derivatives, shares, and other securities business. The Reserve Bank of India has granted the Company a certificate of registration (CoR), allowing it to operate as a Non-Banking Financial Institution (NBFI). Given that the corporation announced selling all of its shares in its wholly-owned subsidiary, the stock is in the spotlight.

"Pursuant to Regulation 29(1) and all other applicable provisions, if any, of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, December 29, 2023 inter-alia, to consider and approve: 1. Divestment of entire shareholding in the wholly owned subsidiary of the Company - Bond Street Capital Private Limited, subject to requisite approval by the members of the Company. 2. Sale of certain property(ies) and investments (in listed and unlisted companies) of the Company, Subject to requisite approval by the members of the Company," said LKP Finance in a stock exchange filing.

In contrast to the Rs 20.11 Cr recorded in the same quarter of the previous fiscal year, the firm had a net income of Rs 24.18 Cr on a stand-alone basis for the quarter that ended in September 2023. In Q2FY24, its net expenses came to Rs 1.25 Cr, down from Rs 1.42 Cr in Q2FY23. Its EBIT was Rs 22.93 Cr, up from Rs 18.69 Cr in the same period last year. In Q2FY24, LKP Finance's net profit was Rs 18.55 Cr, up from Rs 17.23 Cr in Q2FY23.

According to the shareholding pattern of LKP Finance Limited for the July to September 2023 quarter, the Mauritius-based foreign institutional investor (FII) held 2.46 lakh company shares or Saint Capital Fund was holding 1.96 per cent stake in the company. Whereas, CB Green Ventures Pte. Ltd. a company located in Singapore held 2,02,000 shares or 1.61% stake in the company.

On Wednesday, the shares of LKP Finance were trading 0.28% higher at Rs 229 apiece during the morning deals.