Fincare Business Services Unlisted Shares

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.

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 Business Services Unlisted Shares Details:

Total Available Shares:	1000
Face Value:	₹ 1 Per Equity Share
Lot Size:	100 Shares
Current Unlisted Share Price:	₹ Best in Industry Per Equity Share

Financials of Fincare Business Services Unlisted Shares:

Particulars(in Cr)	2021	2020
Interest Income	1296	1106
Fee and Commission Income	48	43
Total Revenue	1440	1192
Total Expenses	1355	1013
PAT	70	125
Net-worth	991	884
Book-Value	30	27

Fincare Business Annual Report 2021

Frequently Asked Questions:

Please find below the procedure for buying Fincare Business Services Unlisted Shares at UnlistedZone.

1. You confirm booking of Fincare Business Services 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 Business Services Unlisted Shares is 6 months after listing. Hence you can’t sell Fincare Business Services 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 Business Services Unlisted Shares at UnlistedZone.

1. We will confirm our buying price of Fincare Business Services Unlisted Shares.
2. We will give you our client master report and you will transfer the Fincare Business Services Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the Fincare Business Services 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 Business Services 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 Business Services Unlisted Shares depends upon category of investors.

1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of Fincare Business Services Unlisted Shares.
2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of Fincare Business Services 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 Business Services 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 Business Services Unlisted Shares.
- b. Name of Fincare Business Services Unlisted Shares
- c. Quantity of Fincare Business Services 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 Business Services 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 Business Services 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 Business Services 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.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable

If you buy Fincare Business Services 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 Services 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 Business Services Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

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

The price of Fincare Business Services 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 Business Services 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 Business Services 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 Business Services 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 Services 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 Services 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 Business Services Unlisted Shares:

2 Comments

Umesh Paliwal

9:30 AM, 25 September 2021

Fincare Business Finance Unlisted shares is available at Rs.100 per share in the Unlisted market…..If you see the book value of Fincare Business Unlisted Shares i.e. 30 as on 31.03.2021…. So, at 100, P/B is over 3x, which looks overpriced…

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Umesh Paliwal

9:28 AM, 25 September 2021

It is a holding company of Fincare Small Finance Bank….

Fincare Small Finance bank has filed for an IPO. However, shares of Fincare Business which is a holding company is available in the unlisted market….

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Fincare Business Services Unlisted Shares

Fincare Business Services Unlisted Shares Details:

Financials of Fincare Business Services Unlisted Shares:

Frequently Asked Questions:

Discussion on Fincare Business Services Unlisted Shares:

2 Comments

Umesh Paliwal

Umesh Paliwal

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