JMJ Fintech, an NBFC focusing on retail and small business lending, has announced a Board meeting to approve a Rights Issue.

The company plans to issue up to 2.56 crore partly paid-up equity shares at ₹10.50 each, totaling up to ₹26.88 crore.

Shareholders will receive two new shares for every one held.

Proceeds will primarily boost the capital base for NBFC expansion (₹19.00 crore) and general corporate purposes (₹6.72 crore). Promoters intend to fully subscribe.

The company reported ₹17.15 crore revenue and ₹5.17 crore profit for the fiscal year.

Key challenges include increased sub-debt, higher NPAs at ₹2.19 crore Gross NPA, and past negative cash flow from operations.

The company recently opened 15 new branches for expansion.