Mumbai: Shares of Maharashtra-based Non-Banking Financial Company (NBFC) Pro Fin Capital Services Limited (BSE–511557) surged sharply on Friday, hitting the upper circuit of 10% despite a weak trend in broader markets, where BSE Sensex fell 400.76 points. The rally comes on the heels of news regarding the company’s upcoming board meeting on 26 November 2025 to discuss a 25% equity stake sale at ₹22 per share.
Hong Kong Connection Drives the Rally
Pro Fin Capital had shared an update with the stock exchanges on 20 November, stating that its board would meet to review a Letter of Intent (LOI) received from Hong Kong-based Excellence Creative Ltd. The LOI expresses interest in acquiring up to 25% of Pro Fin Capital’s equity shares at the proposed price of ₹22 per share. This non-binding proposal led to a surge in market activity.
On 20 November, Pro Fin Capital shares closed at ₹8.71, rising to ₹9.58 by 21 November, eventually hitting the 10% upper circuit limit by market close.
Bonus Issue on the Agenda
During the 26 November board meeting, discussions are also expected on a 1:1 bonus issue approved in principle during the board meeting on 10 October 2025. Under this plan, shareholders will receive one new fully paid-up share for every existing fully paid-up share at a nominal value of ₹1 per share.
Regulatory Approvals and Conditions
The LOI proposal remains subject to board approval, due diligence, final agreements, and compliance with SEBI, BSE, RBI, FEMA, and Companies Act 2013 regulations. The company has clarified that the proposal is in its initial stage and that any material developments will be communicated to the stock exchange. Being a non-binding LOI, it does not constitute a firm commitment from either party.
Strong Financial Performance
For the second quarter ending 30 September 2025, Pro Fin Capital reported a net profit of ₹13.37 crore, up 443% from ₹2.46 crore in the same quarter last year. Total income surged to ₹44.62 crore, compared to ₹6.97 crore in Q2FY25, a year-on-year increase of 540%.
With strong financials and potential strategic investments from Hong Kong, Pro Fin Capital shares have attracted significant market attention, making it one of the most-watched upper-circuit stocks in the financial sector.
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