Veefin Gets Board Nod To Merge Two Subsidiaries With Parent

SUMMARY

Veefin said that the move will enable it to leverage combined assets, enable cost savings, eliminate duplication, strengthen governance and enhance investor value.

Post the deal, the shareholding of promoters in the consolidated entity will increase to 37.85% from 34.52% currently

While GlobeTF offers a transaction banking suite for banks, Estorifi’s tech stack connects corporates and SMEs to banks and NBFCs for their working capital needs

Listed fintech SaaS company Veefin’s board on Tuesday (September 30) approved a proposal to merge its two subsidiaries – GlobeTF Solutions and Estorifi Solutions – with the parent entity, Veefin Solutions Ltd., to consolidate operations.

In its filing with the BSE, the company said that the move will enable it to leverage combined assets, reduce managerial overlaps, enable cost savings, eliminate duplication, strengthen governance, align interests with minority shareholders and enhance investor value.

While GlobeTF offers a comprehensive transaction banking suite for banks and other financial institutions, Estorifi’s tech stack connects corporates and SMEs to banks and NBFCs for their working capital needs.

This comes a couple of months after the company’s board, in August, granted in-principle approval for the consolidation of the subsidiaries with the parent entity via merger. However, the deal will still be subject to regulatory approvals from shareholders, National Company Law Tribunal (NCLT) and others.

As part of the merger, the BSE SME-listed company will allot 2,731 equity shares of the parent entity to shareholders for every ten shares of GlobeTF. Similarly, 6,373 shares of the Veefin will be issued in lieu of every ten shares of Estorifi.

Veefin promoters will relinquish 21 Lakh shares of the two subdiaries at zero consideration. As per the last closing price of Veefin’s stock on Tuesday, these shares were pegged at INR 82 Cr.

“… We wish to inform that board of directors…. considered and approved… the reduction and cancellation of 21,00,000 equity shares forming a part of existing paid-up equity share capital of the company held by identified promoter shareholders at Nil consideration,” read the filing.

However, post the deal, the shareholding of promoters in the consolidated entity will increase to 37.85% from 34.52% currently. Similarly, public shareholders will own 62.15% stake in Veefin post the transaction as against 65.48% currently.

This comes a couple of weeks after Veefin received board nod to raise INR 94.1 Cr by issuing fresh equity shares and convertible warrants, the second fundraise since listing.

Founded in 2020, Veefin Group is a BSE SME-listed company which offers supply chain financing and digital lending solutions to its customers. It caters to a diverse base of clientele comprising banks, financial institutions, fintech firms, B2B marketplaces, and large corporations.

The consolidation comes at a time when the fintech SaaS company has been on an acquisition spree. It has acquired stakes in companies like digital marketing firm White Rivers Media, GenAI startup Walnut AI, lending enablement platform EpikInDiFi, among others in the past year.

On the financial front, the company’s profit zoomed 112% to INR 20.5 Cr in FY25 as against INR 9.7 Cr in the year ago fiscal. Meanwhile, its revenue from operations stood at INR 80.44 Cr in the fiscal under review, up 222% from INR 24.99 Cr in FY24.

Veefin closed Tuesday’s trading session 0.84% lower at INR 390.6 on the BSE SME.