Fincare Small Finance Bank Unlisted Shares

(i) Fincare Small Finance bank is a “digital-first” SFB with a focus on unbanked and under-banked customers, especially in rural and semi-urban areas. According to CRISIL, among comparable SFB peers in India, Fincare Small Finance bank has the highest growth rate in advances over FY2018 to FY2020.

(ii) They follow a business model focused on financial inclusion and aim to provide individuals and businesses with affordable financial products and services that meet their needs. The business objective is to enhance access to savings, credit and other financial products for unbanked and underbanked individuals, MSMEs and unorganized entities, especially in rural areas, by leveraging technology and last-mile distribution.

(iii) In FY2020, we had the best adjusted ROA and ROE (adjusted for COVID-19 provisions) among SFBs and, for the nine months ended December 31, 2020 and FY2020, we were one of India’s most profitable SFBs, based on ROE and ROA (Source: CRISIL Report). The Gross Loan Portfolio (“GLP”) grew from₹ 2154 Cr to ₹ 5547 Cr registering a CAGR of 41.05%, from March 31, 2018 to December 31, 2020.

(iii) This growth was driven primarily by growth in borrowers from 1.02 million as of March 31, 2018 to 2.19 million as of December 31, 2020, a CAGR of 31.82%. The ROE was 18.41% for FY2020 and 14.27% (annualized) for the nine months ended December 31, 2020. They had a total of 2.7 million customers (comprising borrowers and depositors) as of December 31, 2020. They follow a business model focused on financial inclusion and aim to provide individuals and businesses with affordable financial products and services that meet their needs. The business objective is to enhance access to savings, credit and other financial products for unbanked and underbanked individuals, MSMEs and unorganized entities, especially in rural areas, by leveraging technology and last-mile distribution. As of December 31, 2020, 92% of the customers were located in rural areas, and 40% were new to credit. We believe that our business model is profitable, sustainable and socially beneficial.

(iv) They have a deep understanding of unbanked and under-banked customers, especially rural customers, with over 14 years of experience in providing microloans. The Bank operated as an NBFC-ND under the name ‘Disha Microfin Limited’ since 2010 and was registered as an NBFC-MFI in 2013. In 2016, upon receipt of the RBI In-Principle Approval, the Bank acquired the micro-finance operations of FFSPL (which started microfinance operations in 2007) and later changed its name to Fincare Small Finance Bank.

NPA Situation

In FY2020, they had a GNPA Ratio (i.e., the ratio of our Gross NPA to Gross Advances) of 0.92% and an NNPA Ratio of 0.41%. Further, they have a strong capital position, healthy balance sheet and prudent provisioning policy, with a provision coverage ratio (“PCR”) of 74.82%, Tier 1 Capital Ratio of 25.22% and Tier II Capital Ratio of 4.68%, in each case as of December 31, 2020. They are in compliance with and meet the regulatory minimum thresholds prescribed by the RBI for all three ratios.

Loan Book Profile

Gross Loan Portfolio consists primarily of micro-loans, comprising 79.50% of the Gross Loan Portfolio as of December 31, 2020. The portfolio clearly inclined more towards micro-loan the domain which is affected most by Covid-19. We have to see in RHP, what is the NPA level of this micro-loan book as on 31.03.2021. The listed share like Ujjivan Small Finance and Suryoday Small Finance Bank are suffering due to high NPA in micro-finance book.

The micro-loan customers typically are women from low income households in rural India, with limited sources of income, savings and credit histories supported by tax returns and statements of previous loan exposures which are generally unsecured. Many micro-loan borrowers are new to credit, with approximately 40% of the customers as of December 31, 2020 being first-time borrowers. This means that limited credit history of borrowers makes it very high chance of NPA in the case situation like Covid.

Fincare Small Finance Bank Unlisted Shares Details:

Total Available Shares:	Not Available
Face Value:	₹ 10 Per Equity Share
ISIN:	INE519Q01017

Financials of Fincare Small Finance Bank Unlisted Shares:

Particulars (Cr)	2022	2021	2020	2019
Net Interest Income	876	701	586	330
PAT	8.87	113	143	101
Gross Loan Portfolio	7036	5301	5341	3530
Disbursement	NA	4656	4949	3221
ROE	0.80%	12%	18%	22%
ROA	0.09%	1.44%	2.48%	3.20%
GNPA	7.79%	6.42%	0.92%	1.29%
NNPA	3.55%	2.80%	0.41%	0.34%
Net-Worth	1107	950	660	337
Book Value	174	149	117	90

Book Value Calculation of Fincare Small Finance Bank by UnlistedZone
31.03.2022
No. of Shares	22 Cr
Net-Worth	1194 Cr
Book Value	54

Fincare Small Finance Bank FY22 Results Analysis 1. Revenue in Fy22 has increased to 1674 Crores from 1376 Crores last year. Revenue is mainly contributed by Interest Income and Investment income. 2. Total expenditure has increased from 1000 Crores in Fy21 to 1216 Crores in Fy22. 3. Operating Profit has increased from 363 Crores to 431 Crores in Fy22. 4. Loan Book of Fincare Small Finance Bank has increased from 5300 Crores to 7036 Crores. Until this stage, the Fincare Small Finance Bank has shown decent growth. However, if you see the Net-Profit, it has come down heavily from 146 Crores in Fy21 to just 5 Crores in Fy22. Almost 100% profit is decline. The main reason for the profit to decline is due to very high provisioning. In Fy21, the total provision for bad loans was just 216 Crores but that has increased to massive 425 Crores in Fy22. 5. The Gross NPA has increased from 6.42% in Fy21 to 7.79% in Fy22. 6. ROA (Return on Assets) has decreased from 1.44% to 0.09%. 7. D/E has also increased from 1.04 to 1.52. 8. Capital Adequacy Ratio has also reduced from 29.56% to 22.32% in Fy22. ESOPs Issued to Management During the quarter and year ended 31 March, 2022, the fincare Bank has received approval from RBI to grant stock options of 2,65,748 shares under Employee Stock Option Scheme to MD & CEO for FY 2022 (Pertains to FY 21 – proposal for FY 22 is yet to be submitted to the RBI). Valuations of Fincare Bank Unlisted Share Total Net-Worth as on 31.03.2022 is 1194 Crores. Total Shares Outstanding = 22 Crores Book Value = 54 If you give P/B of 1.5 to 2x, the price band of Fincare Small Finance would be from 81 to 108. M.cap = 1782 Cr to 2376 Cr. Fincare SFB Revised DRHP Fincare Financial Results 2022 Fincare Annual Report 2021 Fincare DRHP

Frequently Asked Questions:

Please find below the procedure for buying Fincare Small Finance Bank Unlisted Shares at UnlistedZone.

1. You confirm booking of Fincare Small Finance Bank Unlisted Shares with us at a trading price.
2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
3. We will provide the bank details.
4. You need to transfer funds in that account.
5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
6. Payment has to be done from the same account in which shares are to be credited.
7. We will transfer the shares in 24 hours if funds are credited before 2 pm.

Important Note: Please note that the lock-in period for selling Fincare Small Finance Bank Unlisted Shares is 6 months after listing. Hence you can’t sell Fincare Small Finance Bank Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at sales@unlistedzone.com

Please find below the procedure for selling Fincare Small Finance Bank Unlisted Shares at UnlistedZone.

1. We will confirm our buying price of Fincare Small Finance Bank Unlisted Shares.
2. We will give you our client master report and you will transfer the Fincare Small Finance Bank Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the Fincare Small Finance Bank Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the Fincare Small Finance Bank Unlisted Shares.
5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of Fincare Small Finance Bank Unlisted Shares depends upon category of investors.

1. Venture Capital Funds or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of Fincare Small Finance Bank Unlisted Shares.
2. AIF-II - There is no locking period.
3. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of Fincare Small Finance Bank Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the Fincare Small Finance Bank Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
- a. ISIN number of Fincare Small Finance Bank Unlisted Shares.
- b. Name of Fincare Small Finance Bank Unlisted Shares
- c. Quantity of Fincare Small Finance Bank Unlisted Shares
- d. Cosideration Amount
- e. Target DP ID and Client ID
- f. Annexure
2. Online DIS - Some of the broker these days gives facility of transferring the Fincare Small Finance Bank Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the Fincare Small Finance Bank Unlisted Shares by filling the details similar to Ofline-DIS.

Read our article to understand more about this. https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our UnlistedZone platform, if somebody wants to buy Fincare Small Finance Bank Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.

If you buy Fincare Small Finance Bank Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of Fincare Small Finance Bank Unlisted Shares Instantly?

1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Demat Account = DP ID + Client ID. (16 Characters )
"DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
Example:
CDSL = 12345678(DP ID) and 91234567(Client ID).
NSDL = IN123456 (DP ID) and 78912345(Client ID).
Check in brokers application?
Credit of Fincare Small Finance Bank Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The Fincare Small Finance Bank Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of Fincare Small Finance Bank Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on UnlistedZone.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"UnlistedZone is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, UnlistedZone has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with UnlistedZone."

We at UnlistedZone do the valuation based on 2 methods.

1. We check the last funding that is being done in the Fincare Small Finance Bank Unlisted Shares to ascertain the benchmark valuation.
2. If there is no funding happened in the company, then we try to find a business similar to Fincare Small Finance Bank Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their Fincare Small Finance Bank Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their Fincare Small Finance Bank Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about Fincare Small Finance Bank Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Discussion on Fincare Small Finance Bank Unlisted Shares:

1 Comment

Umesh Paliwal

8:42 AM, 25 September 2021

The IPO price would be in the range of 110-115….

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Fincare Small Finance Bank Unlisted Shares

Fincare Small Finance Bank Unlisted Shares Details:

Financials of Fincare Small Finance Bank Unlisted Shares:

Frequently Asked Questions:

Discussion on Fincare Small Finance Bank Unlisted Shares:

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Umesh Paliwal

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Fincare Small Finance Bank Unlisted Shares

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Fincare Small Finance Bank Unlisted Shares Details:

Financials of Fincare Small Finance Bank Unlisted Shares:

Frequently Asked Questions:

Discussion on Fincare Small Finance Bank Unlisted Shares:

1 Comment

Umesh Paliwal

Leave a Reply Cancel reply

Imp. Links

Imp. Links

Our Office :