Midland Microfin Limited Unlisted Shares

About Midland Microfin

(i) Midland Microfin Limited (MML), founded in 2011, is the first Punjab-based microfinance institution (MFI). The institution focuses on financially and socially empowering women by providing small business loans. The Company is registered as an ‘NBFC – MFI’ with the Reserve Bank of India (RBI).

(ii) At present MML has got a network of 154 branches, which is spread out in 5 States and 1 Union Territory viz. Punjab, Haryana, Rajasthan, Uttar Pradesh, Bihar, and Chandigarh. In 2018-19, the company has opened 50 new branches and with an objective to increase the geographical diversification, the majority of the new branches during the year have been opened in the states of Eastern U.P. and Bihar.

(iii) In 2019, they have opened four Regional Offices in Jaipur, Chandigarh, Varanasi & Patna, to monitor the business progress effectively.

(iv) The core business philosophy of the company to have a stringent lending process and controls at every point of delivery which has enabled the company to maintain its asset quality. They had easily recovered their loans even during demonetization.

Type of Loan Products:

(i) Business Loan:

The company encourages entrepreneurship amongst women as a sustainable source of livelihood by providing business loans for working capital. Business Loans give economically active women access to finance in order to support their micro-enterprises.

They give Rs. 11,000-30,000 and 31,000-50,000 ticket size loan on interest rate of 25.20% for 1 year and 2 year, respectively.

(ii) Water Purifier Loan:

It was observed that people, especially in rural areas, spend a hefty amount of their money on their medical expenses. It not only causes a burden on their finances but is also too much bothersome. The quality of water in Punjab nowadays is not good and contains a lot of toxic elements that are hazardous for health, a water purifier has become the basic necessity of every household.

They give a loan in the range of Rs. 4200 to 8500, with an interest rate of 25.20%, for the duration of 6M, 9M and 11M.

(iii) Sewing Machine Loan:

To provide products and services of outstanding quality to our members, Midland Microfin Limited has collaborated with Greenlight Planet India Pvt Ltd., which is one of the leading Dealers & Manufacturers of Solar Products, to facilitate the services with the mission of Serving Members “Beyond Microfinance.

Loan Size of Rs. 3520 for an interest rate of 25.20%, for 6M, 9M and 11M.

(iv) Solar Lamp Loan:

Loan Size of Rs. 2899 for an interest rate of 25.20%, for 6M, 9M and 11M.

(v) Udaan-Individual Loan:

Udaan loan product is given to MML’s existing customers for working capital as well as a capital investment in their existing business. It is one of MML’s first few attempts to develop individual credit products for its loyal customers.

Loan Size of Rs. 60,000 to 1,00,000 for interest rate of 25.20%, for 2 years.

Facts Sheet:

(i) Having service in 15,734 Villages of India.
(ii) As of March 31, 2019, the borrower base of the Company is 2,96,238.
(iii) Registered growth of 92% in terms of total assets, with total assets amounting to Rs. 748 Crores as on March 31, 2019.
(iv) Opened 54 new branches in 2019.
(v) Loan portfolio of Rs. 549.07 in 2019, up from Rs.350.79 crores in 2018, a growth of 56.53%.

Credit Strengths:

Improved Operational Performance: Number of active borrowers increased from 216336 as on March 31, 2018, to 296239 as on March 31, 2019. The number of branches increased from 104 as on March 31, 2018, to 154 as on March 31, 2019, and further increased to 177 during
the H1 FY20.

Healthy Capitalization: MML has maintained its CRAR at above the basic requirement of 15% since inception. It reported a CRAR of 23.32% as on March 31, 2019. The company Received 40 Crs of capital infusion during the last fiscal that helped the company keep enough cushion for expansion. Tier I CRAR improved from 14.27% as on 31 March 2018 to 18.19%
as of 31 March 2019.

Sustained Asset Quality: The Company has been consistent in maintaining its asset quality. As of March 31, 2019, Gross NPA was 0.47% of the total loan portfolio. The company has provided adequately for the same resulting in Net NPAs of 0.04%. The collection efficiency of the company increased marginally from 99.38% as on March 31, 2018, to 99.66% as on March 31, 2019.

MML has been promoted by Mr. Amardeep Singh Samra, who is also the promoter of Capital Small Finance Bank (erstwhile Capital Local Area Bank). The promoters have an experience of more than four decades in asset financing. The company has also hired qualified and experienced professionals to manage different aspects of its operations.

Business Updates of FY20-21

1. In FY20-21, Midland Microfin has completed 10 years of journey. The journey of MML is thrilling as they have started with one branch, have grown to 217 branches, from first group of women customers to serving & empowering more than 4 Lakh customers and from one state to 9 states & UT.

2. As on 31.03.2021, the Asset size has increased to 1100 Crores.

3. Less Impact of Covid-19= 97% of Midland Microfin Ltd.’s (MML) borrowers are in rural areas (which fortunately have relatively lesser Covid19 incidence), and 62% engage in “essential services” activities such as dairy or agricultural activities – hence their cash flows and repayment capability are largely intact. Pursuant to the order issued by the Ministry of Home Affairs on 15th April 2020, 45% of MML’s branches became operational by April-May end fully complying with the regulatory guidelines and prescribed Covid norms.

4. Midland Microfin has expanded its distribution capabilities and has expanded its presence in the state of Gujarat by adding 20 new branches overall to its network that has been scaled to the level of 217 branches as against 197 in the previous year.

5. During the Financial Year 2020-21, MML has disbursed loan worth Rs. 688 Crores showing decrease of 33.42% as compared to previous year’s loan disbursals of Rs. 1034 Crores due to COVID-19 pandemic and restrictions in certain regions. As on 31.03.2021, cumulative disbursed loan is worth Rs. ~3800 Crores.

State-wise distribution of loans

Bihar = 650 Crores, Gujarat = 1 Crores, Haryana = 400 Crores, HP = 4 Crores, Jharkhand = 58 Crores, Punjab = 1805 Crores, Rajasthan = 627 Crores, and Uttar-Pradesh = 242 Crores.

Financial Updates of FY20-21

1. During the Financial Year 2020-21, Gross Income of the Company increased to Rs. 192 Crores registering a growth of 4.45% over the previous year’s Gross Income of Rs. 184 Crores. The contributing factors to this growth in income were increase in the interest income on JLG loan portfolio.

2. Profit after Tax (PAT) stands at Rs. 14.6 Crores at the end of the Financial Year 2020-21 recording a decline of 21.91% over the previous year’s PAT of Rs. 18 Crores due to creation of higher provision (ECL) during the current year considering the impact of Covid.

3. As on March 31, 2021, the Gross NPA stood at 1.69% as against the previous year’s figure of 0.57%.

Midland Microfin Limited Unlisted Shares Details:

Total Available Shares:	10000
Face Value:	₹ 10 Per Equity Share
ISIN:	INE884Q01015

Financials of Midland Microfin Limited Unlisted Shares:

(fig. in Lakhs)

Year	Revenue	EBITDA	OPM	PAT	NPM	Shares	F.V.	EPS	NW	RONW
2016	3069	1955	64%	371	12%	187.12	10	1.98	3356	11%
2017	4662	3126	67%	431	9%	187.12	10	2.30	4012	11%
2018	5680	3062	54%	118	2%	187.12	10	0.63	5304	2%
2019	11334	6973	62%	1046	9%	287.89	10	3.63	10227	10%
2020	18410	12780	69%	1870	10.1%	333.25	10	5.61	11850	15.7%
2021	19230	12650	66%	1460	7.6%	391.70	10	3.72	17680	8.2%

Particulars	2021	2020	2019	2018
Net Advances	75570	72640	51542	33850
Net Interest Income (NII)	8730	7890	9527	4619
Operating Profit/(Loss)	3140	2930	1565	261
Provision and Contingencies (Other than tax)	1240	420	199	101
Net Profit/(Loss)	1460	1870	1046	117
Book Value per share	45	35	35	28
P/B	1.33	1.70	1.70	2.12

Note: The share price is taken as 60 for the calculation of P/B. Midland Microfin Annual Report 2021 Midland Microfin Annual Report 2019 Midland Microfin Annual Report 2018 Midland Microfin Annual Report 2017 Research Report by UnlistedZone

Frequently Asked Questions:

Please find below the procedure for buying Midland Microfin Limited Unlisted Shares at UnlistedZone.

1. You confirm booking of Midland Microfin Limited 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 Midland Microfin Limited Unlisted Shares is 6 months after listing. Hence you can’t sell Midland Microfin Limited 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 Midland Microfin Limited Unlisted Shares at UnlistedZone.

1. We will confirm our buying price of Midland Microfin Limited Unlisted Shares.
2. We will give you our client master report and you will transfer the Midland Microfin Limited Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the Midland Microfin Limited Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited Unlisted Shares.
- b. Name of Midland Microfin Limited Unlisted Shares
- c. Quantity of Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The Midland Microfin Limited Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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 Midland Microfin Limited 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.

Midland Microfin Limited Unlisted Shares

Midland Microfin Limited Unlisted Shares Details:

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Midland Microfin Limited Unlisted Shares

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Midland Microfin Limited Unlisted Shares Details:

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Frequently Asked Questions:

Discussion on Midland Microfin Limited Unlisted Shares:

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