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Sodhani Capital Ltd IPO

Status:

Overview

IPO date
29 Sept 2025 to 01 Oct 2025
Face value
₹ 10 per share
Price
₹ 51 to ₹51 per share
Issue Size
2,100,000 shares
(aggregating up to ₹ 10.71 Cr)
Allotment Date
03 Oct 2025
Listing at
NSE
Issue type
Fixed Price - SME
Sector

Objectives of Sodhani Capital Ltd IPO

Sodhani Capital Ltd IPO Strategy

About Sodhani Capital Ltd

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T&C*

Strengths vs Risks of Sodhani Capital Ltd

Know the pros & cons

Strengths

  • arrowRelationship with Asset Management Companies.
  • arrowStrong relationship with clients resulting from service efficiency.
  • arrowTechnology & Integration Expertise.
  • arrowTeam to support Business Growth.
  • arrowExperienced & Qualified Management Team.

Risks

  • arrowAll of its operating revenues are derived from the company's business of mutual fund distribution. Failures to attract potential customers mainly due to market volatility, regulatory compliance challenges, competitive pressures, technological adaptation needs, managerial effectiveness, and investor education gaps, may adversely affect the company's revenues, business, results of operations and prospects.
  • arrowAs an intermediary the company has to comply with regulatory framework, by laws and guidelines. Also, the company is subject to periodic inspections and any adverse action taken could affect its business and operations.
  • arrowThe company distributes, on a non-exclusive basis, financial products of third-party institutions i.e. Asset Management Company (AMC)'s. Failures to scale up our distribution business revenue and successfully cross-sell its products could adversely affect the company's results of operations and growth prospects.
  • arrowThe premises of its Registered Office from where the company is currently operating has been taken on lease by the company from its Promoter. In the event of termination or non-renewal of the leases, the company's business and revenues may be adversely affected
  • arrowOur success depends largely upon the services of our Promoter, Directors and other key managerial personnel and our ability to attract and retain them.
  • arrowOur valuation and financial performance may be impacted by market perceptions and economic conditions.
  • arrowLower than expected/anticipated performance of mutual funds distributed by us to customers can impact client trust and future business.
  • arrowWe have experienced negative cash flows in the past.
  • arrowWe have some outstanding litigation against us whose adverse outcome may adversely affect our business, reputation and results of operations.
  • arrowOur business depends on the continued success and reputation of Mutual Fund AMCs, and any negative impact on them may adversely affect our business, results of operations and financial condition.
  • arrowOur Company is in the process of registering its logo/trade mark "Sodhani Capital Ltd" with the Registrar of Trademark; and has made an application for it with the authority. Any infringement of our brand name or failure to get it registered may adversely affect our business. Further, any kind of negative publicity or misuse of our brand name could hamper our brand building efforts and our future growth strategy could be adversely affected.
  • arrowOur registered office is located in the building which also has the registered office of other Promoter group entities and other Group Company.
  • arrowWe have offered Equity Shares during the last one year at a price below the Offer Price.
  • arrowThe average cost of acquisition of Equity Shares by our Promoters and the Selling Shareholders could be lower than the price determined at time of registering the Draft Prospectus.
  • arrowOur Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect our competitive edge and better bargaining power if entered with non- related parties resulting into relatively more favourable terms and conditions and better margins.
  • arrowThe evolving regulatory landscape for mutual fund distributors, governed by the Securities and Exchange Board of India (SEBI), presents both challenges and opportunities for our business.
  • arrowOur ability to attract new customers is dependent upon various factors including our reputation and our ability to maintain a high level of service quality.
  • arrowIn case of our inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate our business it may have a material adverse effect on our business.
  • arrowThe overall performance of mutual funds is influenced by fluctuations in the financial markets. Economic conditions, government policies, and investor sentiment can lead to significant changes in market value, affecting returns on investments, which may directly impact on our business operations.
  • arrowWe have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
  • arrowWe depend on the accuracy and completeness of information about clients for our business. Any misrepresentation, errors in or incompleteness of such information could adversely affect our business.
  • arrowAs the industry embraces digital transformation, distributors must adapt to new technologies and platforms. Failing to keep pace with technological advancements can result in operational inefficiencies and lost business opportunities
  • arrowOur company faces certain risks related to our distribution business including a reduction in commission paid to us which may have an adverse effect on our business, financial condition, cash flows, results of operations and prospects.
  • arrowOur funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency.
  • arrowCredit risk -for debt funds, there is a risk that issuers of securities may default on their obligations, leading to potential losses for investors. This risk is particularly pronounced in funds that invest heavily in corporate bonds. This risk can impact our business and result of operation of our business.
  • arrowThe competitive landscape of the mutual fund distribution sector presents significant challenges for our business.
  • arrowLack of investor awareness poses a significant challenge for our mutual fund distribution business, as many potential investors may not fully understand mutual funds or the associated risks. This knowledge gap can lead to misaligned expectations and investment choices that do not suit their financial goals, ultimately affecting client satisfaction and retention.
  • arrowInterest Rate Risk: Changes in interest rates can negatively affect bond prices held within mutual funds, especially for fixed-income securities. Rising interest rates typically lead to a decline in the value of existing bonds.
  • arrowA cyber-security breach could adversely affect our operations
  • arrowOur Promoters have interests in our Company, in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
  • arrowOur Company has not taken any seperate insurance coverage for the office premises. Only insurance taken by us is regarding the vehicle asset owned by us.
  • arrowIncreased competition for skilled employees and salary increases for our employees may reduce our profit margin.
  • arrowOur inability to manage growth could disrupt our business and reduce our profitability.
  • arrowOur results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
  • arrowMajor fraud, lapses of internal control or failures on part of the employees could adversely impact the company's business.
  • arrowOur Promoters and the Promoter Group will jointly continue to retain majority shareholding in our Company after the Offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • arrowConflict of interest may arise due to common promoters between the issuer company and the promoter group company.
  • arrowIndustry information included in this Draft Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • arrowOur ability to pay any dividends will depend upon future earnings, financial condition and cash flows.
  • arrowOur future fund requirements, in the form of further Issue of capital or securities and/or loans taken by us, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
  • arrowOur Business is exposed to frequent regulatory changes.
  • arrowWe are required to incur high Operational Costs
  • arrowWe have to devote dedicated efforts for Client Retention
  • arrowWe are directly affected by any Economic Slowdown or Market volatility
  • arrowWe may not be able to identify suitable locations for expansion and also our expansion into new regions and markets may present increased risks due to our unfamiliarity with the areas in which we propose to locate.
  • arrowOur revenues from distribution and sale of financial products are dependent on our sustained ability to increase our AuM as well as on the performance of the funds that we distribute.
  • arrowAfter this Issue, the price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not be sustained.
  • arrowThe Equity Shares of our Company will be listed on the SME platform of the BSE Limited and would be traded in lot size. The investors might face risk of liquidity.
  • arrowThe investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
  • arrowAny future issuance of Equity Shares may dilute the investors' shareholdings or sales of our Equity Shares by our Promoters or Promoter Group may adversely affect the trading price of our Equity Shares.
  • arrowForeign investors may be restricted in their ability to purchase or sell Equity Shares.
  • arrowThe investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
  • arrowRights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.
  • arrowOur Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
  • arrowThere are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • arrowSale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • arrowThe deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of our Company.
  • arrowAn investment in the Equity Shares is subject to general risk related to investments in Indian Companies.
  • arrowAny variation in the utilization of the Net Proceeds of the Offer as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
  • arrowThe Offer Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Offer.
  • arrowOur Company will not receive any proceeds from the Offer for Sale.
  • arrowThe Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.
  • arrowThere is no guarantee that the Equity Shares offered pursuant to the Offer will be listed on the BSE SME in a timely manner or at all.
  • arrowThe Company intends to deploy a part of the fresh issue towards funding expenditure towards enhancement of the company's brand visibility. Over the past years the company have not incurred any major expenses under this head.
  • arrow The company's success depends largely upon the services of its Promoter, Directors and other key managerial personnel and the company's ability to attract and retain them.
  • arrowThe competitive landscape of the mutual fund distribution sector presents significant challenges for its business.
  • arrowRisk Relating to Proposed Acquisition of Property.
  • arrow The company's valuation and financial performance may be impacted by market perceptions and economic conditions.
  • arrowLower than expected/anticipated performance of mutual funds distributed by the company to customers can impact client trust and future business.
  • arrowThe company has experienced negative cash flows in the past.
  • arrowAny delay or failures in statutory and regulatory filings may result in penalties or adversely affect its business operations.
  • arrowThe company has some outstanding litigation against the company whose adverse outcome may adversely affect its business, reputation and results of operations.
  • arrow The company's registered office is located in the building which also has the registered office of other Promoter group entities and other Group Company.
  • arrowFrequent Changes in Statutory Auditors may impact Stakeholder Confidence.
  • arrow The company's business depends on the continued success and reputation of Mutual Fund AMCs, and any negative impact on them may adversely affect its business, results of operations and financial condition.
  • arrowThe Company is in the process of registering its logo/trade mark " Sodhani Capital Ltd " with the Registrar of Trademark; and has made an application for it with the authority. Any infringement of its brand name or failures to get it registered may adversely affect the company's business. Further, any kind of negative publicity or misuse of its brand name could hamper the company's brand building efforts and its future growth strategy could be adversely affected.
  • arrowThe Company has reported significantly higher net profit margins compared to industry peers.
  • arrowThe has offered Equity Shares during the last one year at a price below the Offer Price.
  • arrowThe average cost of acquisition of Equity Shares by its Promoters and the Selling Shareholders could be lower than the price determined at time of registering the Prospectus.
  • arrowThe Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non- related parties resulting into relatively more favourable terms and conditions and better margins.
  • arrowThe evolving regulatory landscape for mutual fund distributors, governed by the Securities and Exchange Board of India (SEBI), presents both challenges and opportunities for the company's business.
  • arrow The company's ability to attract new customers is dependent upon various factors including its reputation and the company's ability to maintain a high level of service quality.
  • arrowIn case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company's business it may have a material adverse effect on its business.
  • arrowThe overall performance of mutual funds is influenced by fluctuations in the financial markets. Economic conditions, government policies, and investor sentiment can lead to significant changes in market value, affecting returns on investments, which may directly impact on the company's business operations.
  • arrowThe company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
  • arrowThe company depends on the accuracy and completeness of information about clients for its business. Any misrepresentation, errors in or incompleteness of such information could adversely affect the company's business.
  • arrowAs the industry embraces digital transformation, distributors must adapt to new technologies and platforms. Failing to keep pace with technological advancements can result in operational inefficiencies and lost business opportunities.
  • arrowThe company faces certain risks related to its distribution business including a reduction in commission paid to the company which may have an adverse effect on the company's business, financial condition, cash flows, results of operations and prospects.
  • arrow The company's funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency.
  • arrowCredit risk -for debt funds, there is a risk that issuers of securities may default on their obligations, leading to potential losses for investors. This risk is particularly pronounced in funds that invest heavily in corporate bonds. This risk can impact its business and result of operation of the company's business.
  • arrowLack of investor awareness poses a significant challenge for the company's mutual fund distribution business, as many potential investors may not fully understand mutual funds or the associated risks. This knowledge gap can lead to misaligned expectations and investment choices that do not suit their financial goals, ultimately affecting client satisfaction and retention.
  • arrowInterest Rate Risk: Changes in interest rates can negatively affect bond prices held within mutual funds, especially for fixed-income securities. Rising interest rates typically lead to a decline in the value of existing bonds.
  • arrowA cyber-security breach could adversely affect the company's operations.
  • arrowThe company Promoters have interests in the Company, in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
  • arrowThe Company has not taken any seperate insurance coverage for the office premises. Only insurance taken by the company is regarding the vehicle asset owned by the company.
  • arrowIncreased competition for skilled employees and salary increases for the company's employees may reduce its profit margin.
  • arrow The company's inability to manage growth could disrupt its business and reduce the company's profitability.
  • arrow The company's results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
  • arrowMajor fraud, lapses of internal control or failures on part of the employees could adversely impact the company's business.
  • arrow The company's Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the Offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • arrowConflict of interest may arise due to common promoters between the issuer company and the promoter group company.
  • arrowIndustry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • arrow The company's ability to pay any dividends will depend upon future earnings, financial condition and cash flows.
  • arrow The company's future fund requirements, in the form of further Issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
  • arrow The company's Business is exposed to frequent regulatory changes.
  • arrowThe company is required to incur high Operational Costs.
  • arrowThe company has to devote dedicated efforts for Client Retention.
  • arrowThe company is directly affected by any Economic Slowdown or Market volatility.
  • arrowThe company may not be able to identify suitable locations for expansion and also its expansion into new regions and markets may present increased risks due to our unfamiliarity with the areas in which the company proposes to locate.
  • arrow The company's revenues from distribution and sale of financial products are dependent on its sustained ability to increase the company's AuM as well as on the performance of the funds that we distribute.
  • arrowAfter this Issue, the price of its Equity Shares may be volatile, or an active trading market for the company's Equity Shares may not be sustained.
  • arrowThe Equity Shares of the Company will be listed on the SME platform of the BSE Limited and would be traded in lot size. The investors might faces risk of liquidity.
  • arrowThe investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
  • arrowAny future issuance of Equity Shares may dilute the investors' shareholdings or sales of its Equity Shares by the company's Promoters or Promoter Group may adversely affect the trading price of its Equity Shares.
  • arrowForeign investors may be restricted in their ability to purchase or sell Equity Shares.
  • arrowThe investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
  • arrowRights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.
  • arrow The company's Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
  • arrowThere are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • arrowSale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • arrowThe deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
  • arrowAn investment in the Equity Shares is subject to general risk related to investments in Indian Companies.
  • arrowAny variation in the utilization of the Net Proceeds of the Offer as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
  • arrowThe Offer Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Offer.
  • arrowThe Company will not receive any proceeds from the Offer for Sale.
  • arrowThe Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.
  • arrowThere is no guarantee that the Equity Shares offered pursuant to the Offer will be listed on the BSE SME in a timely manner or at all.

Sodhani Capital Ltd Peer Comparison

Understand the company’s industry standing

Sodhani Capital Ltd
Vedant Asset Ltd
Prudent Corporate Advisory Services Ltd
Face Value
10
10
5
Standalone / Consolidated
Standalone
Consolidated
Consolidated
Total Income Rs. Cr.
3.75
3.8
823
EPS-Basis
16.38
1
33.51
EPS-Diluted
16.38
1
33.51
NAV Per Share
18.82
19.76
116.25
P/E-Basic EPS
---
47.90
51.30
P/E-Diluted EPS
---
---
---
RONW(%)
42.24
5.05
28.83
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 29 Sept 2025 & closes on 01 Oct 2025.

Sodhani Capital Limited is a mutual fund distributor, headquartered in Jaipur and was established on March 12, 2019 as Sodhani Capital Private Limited'. The status of the Company was converted into a public limited company on August 22, 2023 as Sodhani Capital Limited', pursuant to a certificate of incorporation issued by Registrar of Companies, Jaipur, Rajasthan. At present, Company is engaged in the business of financial services, specializing in the distribution of mutual fund products. It serves as a trusted intermediary between Asset Management Companies (AMCs) and investors. In year 2021, Company acquired the mutual fund distribution business (ARN transfer) of Mr. Rajesh Kumar Sodhani who has been carrying out the said business as an individual mutual fund distributor since year 2006. In 2021, Company took over the assets under management (AUM) of Mr. Rajesh Kumar Sodhani and thereafter grew the business to reach the present AUM of over Rs. 480 Cr. After the transfer of his business to the Company, Mr. Rajesh Kumar Sodhani had surrendered his ARN. A key milestone in this growth phase was the company's transition from private to public limited status in 2023, enhancing its capital-raising capabilities and operational capacity. The company's success is attributed to three key factors: consistent investment in operational infrastructure, strong focus on client education through initiatives like awareness seminars, and capable human talent. This combination has positioned Company as a leading mutual fund distributor with robust growth potential. The company's core business focuses on mutual fund distribution, serving retail investors, high-net-worth individuals (HNIs). While business is spread across the year, it witnesses peak operations during the tax-saving season (January-March). The service offering encompasses a diverse range of mutual funds, including equity funds for long-term growth, debt funds for stability, hybrid funds for balanced returns, and ELSS for tax savings under Section 80C. A key offering is the Systematic Investment Plans (SIPs), designed to promote disciplined savings and generational wealth building through regular, structured investments. Company launched the Initial Public Offer by issuing 21,00,000 equity shares of face value Rs 10/-each, by raising Rs 10.71 Crores, consisting a fresh issue of 16,90,000 equity shares aggregating to Rs 8.61 Crore and the Offer for sale of 4,10,000 equity shares aggregating to Rs 2.09 Crore in October, 2025. The Promoters, Ritika Sodhani and Aastha Sodhani acquired equity shares in 2025. The period between 2022 and 2025 witnessed further growth in both client base and assets under management (AUM). Client numbers grew from 4,000 in 2022 to over 7,000 by 2025, while AUM expanded from Rs 200 Crore to Rs 500 Crore.

Sodhani Capital Ltd IPO will close on 01 Oct 2025.

  • Relationship with Asset Management Companies.
  • Strong relationship with clients resulting from service efficiency.
  • Technology & Integration Expertise.
  • Team to support Business Growth.
  • Experienced & Qualified Management Team.

S.No Promoters Name Pre Issue Shares Pre Issue Percentage Post Issue Shares Post Issue Percentage
1 Rajesh Kumar Sodhani 3307486 52.88 3307486 37.85
2 Priya Sodhani 2063250 32.99 1953250 24.58
3 Ritika Sodhani 442125 7.07 442125 5.57
4 Aastha Sodhani 442125 7.07 442125 5.57
5 Kailash Chandra Sodhani 4 --- 4 ---
6 Ganga Devi Sodhani 4 --- 4 ---
7 Suresh Kumar Sodhani 4 --- 4 ---

  • All of its operating revenues are derived from the company's business of mutual fund distribution. Failures to attract potential customers mainly due to market volatility, regulatory compliance challenges, competitive pressures, technological adaptation needs, managerial effectiveness, and investor education gaps, may adversely affect the company's revenues, business, results of operations and prospects.
  • As an intermediary the company has to comply with regulatory framework, by laws and guidelines. Also, the company is subject to periodic inspections and any adverse action taken could affect its business and operations.
  • The company distributes, on a non-exclusive basis, financial products of third-party institutions i.e. Asset Management Company (AMC)'s. Failures to scale up our distribution business revenue and successfully cross-sell its products could adversely affect the company's results of operations and growth prospects.
  • The premises of its Registered Office from where the company is currently operating has been taken on lease by the company from its Promoter. In the event of termination or non-renewal of the leases, the company's business and revenues may be adversely affected
  • Our success depends largely upon the services of our Promoter, Directors and other key managerial personnel and our ability to attract and retain them.
  • Our valuation and financial performance may be impacted by market perceptions and economic conditions.
  • Lower than expected/anticipated performance of mutual funds distributed by us to customers can impact client trust and future business.
  • We have experienced negative cash flows in the past.
  • We have some outstanding litigation against us whose adverse outcome may adversely affect our business, reputation and results of operations.
  • Our business depends on the continued success and reputation of Mutual Fund AMCs, and any negative impact on them may adversely affect our business, results of operations and financial condition.
  • Our Company is in the process of registering its logo/trade mark "Sodhani Capital Ltd" with the Registrar of Trademark; and has made an application for it with the authority. Any infringement of our brand name or failure to get it registered may adversely affect our business. Further, any kind of negative publicity or misuse of our brand name could hamper our brand building efforts and our future growth strategy could be adversely affected.
  • Our registered office is located in the building which also has the registered office of other Promoter group entities and other Group Company.
  • We have offered Equity Shares during the last one year at a price below the Offer Price.
  • The average cost of acquisition of Equity Shares by our Promoters and the Selling Shareholders could be lower than the price determined at time of registering the Draft Prospectus.
  • Our Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect our competitive edge and better bargaining power if entered with non- related parties resulting into relatively more favourable terms and conditions and better margins.
  • The evolving regulatory landscape for mutual fund distributors, governed by the Securities and Exchange Board of India (SEBI), presents both challenges and opportunities for our business.
  • Our ability to attract new customers is dependent upon various factors including our reputation and our ability to maintain a high level of service quality.
  • In case of our inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate our business it may have a material adverse effect on our business.
  • The overall performance of mutual funds is influenced by fluctuations in the financial markets. Economic conditions, government policies, and investor sentiment can lead to significant changes in market value, affecting returns on investments, which may directly impact on our business operations.
  • We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
  • We depend on the accuracy and completeness of information about clients for our business. Any misrepresentation, errors in or incompleteness of such information could adversely affect our business.
  • As the industry embraces digital transformation, distributors must adapt to new technologies and platforms. Failing to keep pace with technological advancements can result in operational inefficiencies and lost business opportunities
  • Our company faces certain risks related to our distribution business including a reduction in commission paid to us which may have an adverse effect on our business, financial condition, cash flows, results of operations and prospects.
  • Our funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency.
  • Credit risk -for debt funds, there is a risk that issuers of securities may default on their obligations, leading to potential losses for investors. This risk is particularly pronounced in funds that invest heavily in corporate bonds. This risk can impact our business and result of operation of our business.
  • The competitive landscape of the mutual fund distribution sector presents significant challenges for our business.
  • Lack of investor awareness poses a significant challenge for our mutual fund distribution business, as many potential investors may not fully understand mutual funds or the associated risks. This knowledge gap can lead to misaligned expectations and investment choices that do not suit their financial goals, ultimately affecting client satisfaction and retention.
  • Interest Rate Risk: Changes in interest rates can negatively affect bond prices held within mutual funds, especially for fixed-income securities. Rising interest rates typically lead to a decline in the value of existing bonds.
  • A cyber-security breach could adversely affect our operations
  • Our Promoters have interests in our Company, in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
  • Our Company has not taken any seperate insurance coverage for the office premises. Only insurance taken by us is regarding the vehicle asset owned by us.
  • Increased competition for skilled employees and salary increases for our employees may reduce our profit margin.
  • Our inability to manage growth could disrupt our business and reduce our profitability.
  • Our results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
  • Major fraud, lapses of internal control or failures on part of the employees could adversely impact the company's business.
  • Our Promoters and the Promoter Group will jointly continue to retain majority shareholding in our Company after the Offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • Conflict of interest may arise due to common promoters between the issuer company and the promoter group company.
  • Industry information included in this Draft Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • Our ability to pay any dividends will depend upon future earnings, financial condition and cash flows.
  • Our future fund requirements, in the form of further Issue of capital or securities and/or loans taken by us, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
  • Our Business is exposed to frequent regulatory changes.
  • We are required to incur high Operational Costs
  • We have to devote dedicated efforts for Client Retention
  • We are directly affected by any Economic Slowdown or Market volatility
  • We may not be able to identify suitable locations for expansion and also our expansion into new regions and markets may present increased risks due to our unfamiliarity with the areas in which we propose to locate.
  • Our revenues from distribution and sale of financial products are dependent on our sustained ability to increase our AuM as well as on the performance of the funds that we distribute.
  • After this Issue, the price of our Equity Shares may be volatile, or an active trading market for our Equity Shares may not be sustained.
  • The Equity Shares of our Company will be listed on the SME platform of the BSE Limited and would be traded in lot size. The investors might face risk of liquidity.
  • The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
  • Any future issuance of Equity Shares may dilute the investors' shareholdings or sales of our Equity Shares by our Promoters or Promoter Group may adversely affect the trading price of our Equity Shares.
  • Foreign investors may be restricted in their ability to purchase or sell Equity Shares.
  • The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
  • Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.
  • Our Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
  • There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • Sale of Equity Shares by our Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of our Company.
  • An investment in the Equity Shares is subject to general risk related to investments in Indian Companies.
  • Any variation in the utilization of the Net Proceeds of the Offer as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
  • The Offer Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Offer.
  • Our Company will not receive any proceeds from the Offer for Sale.
  • The Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.
  • There is no guarantee that the Equity Shares offered pursuant to the Offer will be listed on the BSE SME in a timely manner or at all.
  • The Company intends to deploy a part of the fresh issue towards funding expenditure towards enhancement of the company's brand visibility. Over the past years the company have not incurred any major expenses under this head.
  • The company's success depends largely upon the services of its Promoter, Directors and other key managerial personnel and the company's ability to attract and retain them.
  • The competitive landscape of the mutual fund distribution sector presents significant challenges for its business.
  • Risk Relating to Proposed Acquisition of Property.
  • The company's valuation and financial performance may be impacted by market perceptions and economic conditions.
  • Lower than expected/anticipated performance of mutual funds distributed by the company to customers can impact client trust and future business.
  • The company has experienced negative cash flows in the past.
  • Any delay or failures in statutory and regulatory filings may result in penalties or adversely affect its business operations.
  • The company has some outstanding litigation against the company whose adverse outcome may adversely affect its business, reputation and results of operations.
  • The company's registered office is located in the building which also has the registered office of other Promoter group entities and other Group Company.
  • Frequent Changes in Statutory Auditors may impact Stakeholder Confidence.
  • The company's business depends on the continued success and reputation of Mutual Fund AMCs, and any negative impact on them may adversely affect its business, results of operations and financial condition.
  • The Company is in the process of registering its logo/trade mark " Sodhani Capital Ltd " with the Registrar of Trademark; and has made an application for it with the authority. Any infringement of its brand name or failures to get it registered may adversely affect the company's business. Further, any kind of negative publicity or misuse of its brand name could hamper the company's brand building efforts and its future growth strategy could be adversely affected.
  • The Company has reported significantly higher net profit margins compared to industry peers.
  • The has offered Equity Shares during the last one year at a price below the Offer Price.
  • The average cost of acquisition of Equity Shares by its Promoters and the Selling Shareholders could be lower than the price determined at time of registering the Prospectus.
  • The Company in the past has entered into Related Party Transactions and may continue to do so in future also, which may affect its competitive edge and better bargaining power if entered with non- related parties resulting into relatively more favourable terms and conditions and better margins.
  • The evolving regulatory landscape for mutual fund distributors, governed by the Securities and Exchange Board of India (SEBI), presents both challenges and opportunities for the company's business.
  • The company's ability to attract new customers is dependent upon various factors including its reputation and the company's ability to maintain a high level of service quality.
  • In case of its inability to obtain, renew or maintain the statutory and regulatory licenses, permits and approvals required to operate the company's business it may have a material adverse effect on its business.
  • The overall performance of mutual funds is influenced by fluctuations in the financial markets. Economic conditions, government policies, and investor sentiment can lead to significant changes in market value, affecting returns on investments, which may directly impact on the company's business operations.
  • The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
  • The company depends on the accuracy and completeness of information about clients for its business. Any misrepresentation, errors in or incompleteness of such information could adversely affect the company's business.
  • As the industry embraces digital transformation, distributors must adapt to new technologies and platforms. Failing to keep pace with technological advancements can result in operational inefficiencies and lost business opportunities.
  • The company faces certain risks related to its distribution business including a reduction in commission paid to the company which may have an adverse effect on the company's business, financial condition, cash flows, results of operations and prospects.
  • The company's funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency.
  • Credit risk -for debt funds, there is a risk that issuers of securities may default on their obligations, leading to potential losses for investors. This risk is particularly pronounced in funds that invest heavily in corporate bonds. This risk can impact its business and result of operation of the company's business.
  • Lack of investor awareness poses a significant challenge for the company's mutual fund distribution business, as many potential investors may not fully understand mutual funds or the associated risks. This knowledge gap can lead to misaligned expectations and investment choices that do not suit their financial goals, ultimately affecting client satisfaction and retention.
  • Interest Rate Risk: Changes in interest rates can negatively affect bond prices held within mutual funds, especially for fixed-income securities. Rising interest rates typically lead to a decline in the value of existing bonds.
  • A cyber-security breach could adversely affect the company's operations.
  • The company Promoters have interests in the Company, in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
  • The Company has not taken any seperate insurance coverage for the office premises. Only insurance taken by the company is regarding the vehicle asset owned by the company.
  • Increased competition for skilled employees and salary increases for the company's employees may reduce its profit margin.
  • The company's inability to manage growth could disrupt its business and reduce the company's profitability.
  • The company's results of operations are likely to vary from year to year and be unpredictable, which could cause the market price of the Equity Shares to be volatile.
  • Major fraud, lapses of internal control or failures on part of the employees could adversely impact the company's business.
  • The company's Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the Offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
  • Conflict of interest may arise due to common promoters between the issuer company and the promoter group company.
  • Industry information included in this Prospectus has been derived from industry reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate.
  • The company's ability to pay any dividends will depend upon future earnings, financial condition and cash flows.
  • The company's future fund requirements, in the form of further Issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
  • The company's Business is exposed to frequent regulatory changes.
  • The company is required to incur high Operational Costs.
  • The company has to devote dedicated efforts for Client Retention.
  • The company is directly affected by any Economic Slowdown or Market volatility.
  • The company may not be able to identify suitable locations for expansion and also its expansion into new regions and markets may present increased risks due to our unfamiliarity with the areas in which the company proposes to locate.
  • The company's revenues from distribution and sale of financial products are dependent on its sustained ability to increase the company's AuM as well as on the performance of the funds that we distribute.
  • After this Issue, the price of its Equity Shares may be volatile, or an active trading market for the company's Equity Shares may not be sustained.
  • The Equity Shares of the Company will be listed on the SME platform of the BSE Limited and would be traded in lot size. The investors might faces risk of liquidity.
  • The investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.
  • Any future issuance of Equity Shares may dilute the investors' shareholdings or sales of its Equity Shares by the company's Promoters or Promoter Group may adversely affect the trading price of its Equity Shares.
  • Foreign investors may be restricted in their ability to purchase or sell Equity Shares.
  • The investors may be restricted in their ability to exercise pre-emptive rights under Indian law and may be adversely affected by future dilution of their ownership position.
  • Rights of shareholders under Indian law may be more limited than under the laws of other jurisdictions.
  • The company's Equity Shares are quoted in Indian Rupees in India, and therefore investors may be subject to potential losses arising out of exchange rate risk on the Indian Rupee and risks associated with the conversion of Indian Rupee proceeds into foreign currency.
  • There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
  • Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
  • The deployment of funds raised through this Offer shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
  • An investment in the Equity Shares is subject to general risk related to investments in Indian Companies.
  • Any variation in the utilization of the Net Proceeds of the Offer as disclosed in this Prospectus shall be subject to certain compliance requirements, including prior Shareholders' approval.
  • The Offer Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Offer.
  • The Company will not receive any proceeds from the Offer for Sale.
  • The Equity Shares have never been publicly traded, and, after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Offer Price, or at all.
  • There is no guarantee that the Equity Shares offered pursuant to the Offer will be listed on the BSE SME in a timely manner or at all.

The Issue type of Sodhani Capital Ltd is Fixed Price - SME.

The minimum application for shares of Sodhani Capital Ltd is 4000.

The total shares issue of Sodhani Capital Ltd is 2100000.

Initial public offering of up to 21,00,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company for cash at a price of Rs. 51 per equity share (Including a Share Premium of Rs. 41 Per Equity Share) ("Offer Price") Aggregating up to Rs. 10.71 crores (the "Offer") comprising a fresh issue of up to 16,90,000 equity shares of face value Rs. 10/- each aggregating up to Rs. 8.62 Crores by the company (the "Fresh Issue") and an offer for sale of up to 4,10,000 equity shares (the "Offered Shares") by Rajesh Kumar Sodhani and Priya Sodhani aggregating up to Rs. 2.09 crores (the "Selling Shareholder, the "Offered Shares") (Such Offer for sale by the Selling Shareholder, the "Offer for Sale" and together with the fresh issue, "the Offer"). The offer will constitute 26.43% of the post-offer paid-up equity share capital of the company. 1,06,000 equity shares aggregating to Rs. 0.54 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. issue of 19,94,000 equity shares of face value of Rs. 10/- each at an issue price of Rs. 51/- per equity share aggregating to Rs. 10.17 crores is hereinafter referred to as the "Net Issue". The issue and the net issue will constitute 26.43% and 25.10%, respectively of the post issue paid up equity share capital of the company. Price Band: Rs. 51/- for equity share of face value of Rs. 10 each. The floor price is 5.10 times times the face value and cap value of the equity shares. Bids can made for a minimum of 4,000 equity shares and in multiples of 2,000 equity shares thereafter.