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:
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. 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%.
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Please find below the procedure for buying Midland Micro Finance Limited Unlisted Shares at UnlistedZone.
Please find below the procedure for selling Midland Micro Finance Limited Unlisted Shares at UnlistedZone.
The lock-in period for Midland Micro Finance Limited Unlisted Shares varies depending on the category of investors:
This regulation was introduced by SEBI in August 2021. The rule change, which reduced the lock-in period from one year to six months, was aimed at encouraging more investments in startups that are preparing for public offerings or IPOs. This reduction in the lock-in period is seen as a significant step forward, and since its introduction, many Portfolio Management Services (PMS) have been advising their clients to invest in Pre-IPO shares to capitalize on the benefits of early-stage investments.
DIS, or Delivery Instruction Slip, is a tool used by investors to sell or transfer Midland Micro Finance Limited Unlisted Shares from their demat account to another. There are two types of DIS Methods:
1. Offline-DIS: This is a traditional, paper-based method for transferring shares. When using Offline-DIS, investors are required to fill out a DIS form and submit it to their broker. The necessary fields in the form include:
a. ISIN number of Midland Micro Finance Limited Unlisted Shares.
b. Name of Midland Micro Finance Limited Unlisted Shares.
c. Quantity of Midland Micro Finance Limited Unlisted Shares.
d. Consideration Amount.
e. Target DP ID and Client ID.
f. Annexure.
2. Online DIS: Some brokers offer the facility to transfer Midland Micro Finance Limited Unlisted Shares through an online DIS system. It's advisable to check with your broker if such a facility is available.
For instance, platforms like Angel Broking provide an Online-DIS feature. In this method, an investor simply needs to add a beneficiary and transfer Midland Micro Finance Limited Unlisted Shares by filling in details similar to those required in the Offline-DIS.
For a more comprehensive understanding of this process, you can refer to our detailed article: https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/
In recent years, the unlisted share market has expanded significantly, leading to a reduction in the minimum investment amount. Previously, the typical investment ticket size ranged from 5-10 Lakhs, but in the current market scenario, it has decreased to between 35-50k. Therefore, through our UnlistedZone platform, if someone wishes to invest in Midland Micro Finance Limited Unlisted Shares, the minimum investment required would now be in the range of 35-50k
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates:
Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favorable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period:
The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance.
When you purchase Midland Micro Finance Limited Unlisted Shares through UnlistedZone, it's important to note that, as per SEBI regulations, these shares can only be transferred to a demat account.
There are two primary ways to check the credit of Midland Micro Finance Limited Unlisted Shares in your account:
1. Using NSDL or CDSL Applications:
Download the NSDL or CDSL application from the Google Play Store.
To determine whether your stock broker is registered with NSDL or CDSL, you can examine the format of your Demat Account number. The Demat Account number consists of 16 characters, combining the DP ID and Client ID.
DP ID is the unique identification number of the Broker, assigned by CDSL or NSDL.
Client ID is the unique identification number of the Client, representing their portfolio.
In CDSL, the Demat Account number is entirely numeric (e.g., 12345678 for DP ID and 91234567 for Client ID).
In NSDL, the first two characters are alphabetic, representing the country (e.g., 'IN' for India), followed by a 6-digit unique number for the Broker (DP ID) and an 8-digit Client ID (e.g., IN123456 for DP ID and 78912345 for Client ID).
2. Checking in Broker's Application:
The credit of Midland Micro Finance Limited Unlisted Shares can also be checked in your broker's application. However, it's important to note that it may take T+2 days for the shares to show up in the application after the transaction.
The Midland Micro Finance Limited Unlisted Shares are credited in the demat account on the same day as the transfer of funds into our company's bank account.
"The price of Midland Micro Finance Limited Unlisted Shares can be checked in two ways. First, you can join our Telegram channel, where we share the latest prices of all unlisted shares daily in the morning. Secondly, you can check price on our UnlistedZone platform to view historical graphs and prices of all shares in one place."
Investing in Midland Micro Finance Limited Unlisted Shares, like any investment, carries certain risks that should be carefully considered:
1. Liquidity Risk: Unlisted shares, by their nature, are not traded on public stock exchanges. This can result in lower liquidity compared to listed shares, meaning it might be more challenging to find buyers when you wish to sell your shares.
2. Price Volatility: The price of Midland Micro Finance Limited Unlisted Shares can be more volatile compared to listed shares. This is partly due to the lack of regular public trading and potentially limited information available about the company's financial health and performance.
3. Regulatory Risk: Unlisted shares are subject to different regulatory frameworks than listed shares. Any changes in regulations or compliance requirements can impact the value and tradeability of these shares.
4. Limited Information: There may be less publicly available information about unlisted companies. This can make it more difficult to assess the company's true value and potential for growth, increasing the risk of investment.
5. No Guarantee of Future Listing: Investing in Midland Micro Finance Limited Unlisted Shares with the expectation of future listing on a public exchange carries the risk that the listing may not occur. This can affect both the liquidity and potential value appreciation of the shares.
6. Company-Specific Risks: Each company has its own set of risks based on its industry, management, financial health, and market position. These risks can significantly impact the performance of your investment in Midland Micro Finance Limited Unlisted Shares.
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UnlistedZone stands as India's fastest-growing and leading marketplace for buying and selling unlisted shares. Over the past 5 years, we have carved a niche in the financial market, website hit user inflows over a 2 million users on our platform since inception. This remarkable journey is underscored by the sheer volume of transactions facilitated through UnlistedZone, which has already surpassed the 300 Crore mark.
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Valuation Methodology at UnlistedZone for Midland Micro Finance Limited Unlisted Shares
At UnlistedZone, we employ a meticulous and strategic approach to valuing Midland Micro Finance Limited Unlisted Shares, utilizing two primary methods: Benchmark Valuation Based on Latest Funding:
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Investor Advisory: As experts in the unlisted space, we at UnlistedZone emphasize the importance of thorough risk assessment to all our investors. It's crucial to evaluate all risk parameters carefully before investing in unlisted shares. This due diligence is key to making informed and strategic investment decisions in the dynamic and evolving unlisted market.
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"The Securities and Exchange Board of India (SEBI) does have a regulatory influence on the unlisted market, though it's not as comprehensive as its oversight of the listed markets.
Key aspects of SEBI's involvement in the unlisted space include:
1. Applicable Rules and Regulations: Certain SEBI regulations are indeed applicable to transactions in the unlisted market. This includes the mandatory lock-in period of 6 months, the requirement to pay stamp duty, and depository participant (DP) charges for every transaction. These measures are in place to ensure a certain level of standardization and protection in the unlisted market, similar to those in the listed markets.
2. Lack of Specific Regulation for Unlisted Brokers: As of now, SEBI does not have specific regulations for becoming an unlisted broker. This means that while certain SEBI rules apply to transactions within the unlisted market, the process of becoming a broker in this space is not directly regulated by SEBI. This lack of direct regulation highlights the importance of due diligence by investors when engaging with brokers in the unlisted market.
3. Investor Protection and Transparency: The regulations that do apply, such as the lock-in period and transaction charges, are designed to protect investors and add a layer of transparency to these transactions. They aim to mitigate some of the risks inherent in trading unlisted securities, which typically don't have the same level of public scrutiny and regulatory oversight as listed securities. In summary, while SEBI's regulatory framework does extend to certain aspects of the unlisted market, it does not comprehensively regulate all aspects of it, particularly concerning the accreditation of unlisted brokers. This underscores the need for investors to exercise caution and conduct thorough research when participating in the unlisted market."
"For comprehensive and up-to-date news and information about Midland Micro Finance Limited Unlisted Shares, we have several platforms to keep you informed. Our website is regularly updated with the latest insights and developments. For real-time updates and engaging discussions, you can join our Telegram channel. Additionally, follow us on Twitter for quick news bites and industry trends. And for more in-depth analysis and informative content, subscribe to our YouTube channel. These resources are designed to provide you with a well-rounded understanding of the unlisted market, ensuring you have access to all the information you need about Midland Micro Finance Limited Unlisted Shares."