Delhi HC halts Unity SFB’s share capital plan in BharatPe dispute

Delhi High Court restrained Unity Small Finance Bank (Unity SFB) from increasing its authorised share capital from Rs 4,000 crore to Rs 4,900 crore.

The proposed capital increase was intended to facilitate conversion of warrants into compulsorily convertible preference shares (CCPS) before expiry.

BharatPe opposed the move, arguing it would dilute its stake in Unity SFB and required its consent under the shareholders' agreement.

The court issued an interim order preventing the bank from placing the proposal before its board until arbitration resolves the dispute.

The case underscores shareholder rights and governance in financial institutions formed under regulatory reconstruction plans like Unity SFB's takeover of PMC Bank.