Fincare Business Services Limited was incorporated on 5th August 2014, as a Private Limited Company with its Registered Office at Bengaluru, Karnataka. In 2016, Fincare Business Service Limited was converted into a Public Limited Company and transited to a Non-Deposit taking Systematically Important- Core Investment Company (CIC-ND-SI) vide RBI Certificate of Registration dated 2nd February 2017 with its main objective of providing loans) to its subsidiary Company, i.e Fincare Small Finance Bank Limited and other group Companies.
Its main business comes from its subsidiary company which is basically a small finance bank which lends to under-served and under penetrated areas of country. So let us talk about Fincare Small Finance Bank.
(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.
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.
|Total Available Shares:||1000|
|Face Value:||₹ 1 Per Equity Share|
|Lot Size:||250 Shares|
|Current Unlisted Share Price:||₹ 65 Per Equity Share|
Please find below the procedure for buying Fincare Business Finance Unlisted Shares at UnlistedZone.
Please find below the procedure for selling Fincare Business Finance Unlisted Shares at UnlistedZone.
Lock-in period of Fincare Business Finance Unlisted Shares depends upon category of investors.
DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the Fincare Business Finance Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.
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 Business Finance 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 Business Finance 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 Business Finance Unlisted Shares Instantly?
The Fincare Business Finance Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.
The price of Fincare Business Finance 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.
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 Business Finance 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 Business Finance 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 Business Finance 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.