Veefin Solutions is progressing with the merger of its subsidiaries GlobeTF Solutions and Estorifi Solutions, aiming to simplify its corporate structure, attract new investors, and improve market clarity amid ongoing debt reliance.
Veefin Solutions said its planned amalgamation of two subsidiaries is moving ahead, with four of the seven required steps already completed and a petition to the National Company Law Tribunal due to be filed shortly. The company says the restructuring will simplify its corporate structure and could help draw in fresh investors, while also making the listed entity easier to understand for the market.
According to information on the company’s investor site and reporting by Moneycontrol, the scheme covers GlobeTF Solutions and Estorifi Solutions, both of which are set to be merged into Veefin, subject to the usual approvals from shareholders, creditors and regulators. Veefin has also said its promoters will give up 2.1 million shares, valued at about ₹83 crore, without payment, a move the company presents as a way to support minority shareholders and improve governance.
The restructuring comes as Veefin continues to lean on debt rather than equity to fund working-capital needs. Raja Debnar, the chairman and managing director, said on the company’s earnings call that borrowing at roughly 14% to 15% looks costly, but avoids diluting existing shareholders at a time when the share price is not attractive for a fundraising. He said the debt is intended as a bridge between lumpy revenue inflows and steady expenditure, and that the company expects to reduce borrowings over the next couple of years. Simply Wall St has noted that Veefin’s share count rose by 18% over the past year, underscoring investor sensitivity to further dilution.
Debnar also outlined how the business books revenue from enterprise contracts, saying signed deals are recognised over five years through implementation fees, recurring licence income and support charges. He said the reported $15.27 million in new wins will flow into revenue gradually, and that investors should think in terms of annual deal cohorts rather than quarterly spikes. On the PSB Exchange, he said the current mismatch between demand and approved limits reflects the slow pace of bank integrations, with only a handful of lenders live so far and more than 20 still to come online. He added that the company’s pipeline remains healthy, with new opportunities more than replacing converted business in the latest quarter.
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