S.M.I.L.E. Microfinance Limited was started in 2004 to provide credit services to the urban and rural poor in the state of Tamilnadu. The company started as non-deposit taking NBFC in January 2006 and later on received an MFI license in May 2015. SML provides credit to economically-backward women through the joint liability group mechanism.
DWM Investments (Cyprus) Limited infused equity of Rs. 25 crores each in FY2010 and FY2011 and holds a stake of about 66.6% in the company at present. The promoter group held 18.6% while women members (erstwhile and current) held 13.3%.
Tamilnadu region accounts for the majority of the portfolio for SMFL. The two main districts i.e. Chennai and Madurai account for 28% of total AUM as on 31.03.2020.
How does Smile Microfinance do Business?
1. SMFL operates under the JLG lending model in which the groups undergo a three-day training program (Compulsory Group Training-CGT) regarding the loan process, product details, group formation, and group liability.
2. Then Field Development Officers (FDOs) complete the loan application process and submit the documentation to the branch manager along with KYC details.
3. After verifying all the details, the loan is sanctioned by Divisional Manager for loans up to Rs.30,000. If the loan amount exceeds Rs.30,000, then the loans are sanctioned by the Zonal Manager.
4. Loan verification takes place at the branches where BM will verify the passbook of each member to make sure that the account number and IFSC code they provided are correct. These details are then sent to HO and the loan is disbursed to the client through NEFT.
5. Every borrower is given with the repayment schedule indicating the due dates and the passbook for the loan account.
6. The portfolio is monitored on an on-going basis by post disbursement verification of assets created out of loan amount. The repayment happens on fortnightly basis at the centers during center meetings.
Stats as on 31.03.2020
1. Presence in 6 states, 43 districts, and 137 branches.
2. 799 Employees, 3.16 Lakh Members, and 2.85 Lakh borrowers.
3. Total Portfolio Size = 606 Crores
4. Total loan disbursed as on date = 5800 Crores.
5. Loan disbursed in 2020 = 887 Crores.
Financial Parameters of NBFC/MFI
1. As on 31.03.2020, the Capital Adequacy Ratio is at 23.64% which is well above the regulatory requirement.
2. NIM= Net Interest Margin (NIM) increased from 9.31% in FY19 to 9.86% in FY20 on account of reduction in the cost of borrowings.
3. Opex/Total Assest= This factor has increased from 4.76% to 6.80% in FY20, as the company has recruited new employees and opened up new branches.
4. Return on Toal Assets(ROTA)= With the increase in credit cost and operational, ROTA decreased from 3.55% in FY19 to 1.91% in FY20.
5. GNPA and N.NPA = Gross NPA and Net NPA stood at 0.22% and Nil as on March 31, 2020, as against 0.26% and Nil as on March 31, 2019.
1. AUM has witnessed a growth of 17% from Rs.516 crore in FY19 to Rs.606 crore in FY20.
2. The company during FY20 has opened new branches in Chattisgarh, Jharkhand, Karnataka and Madhya Pradesh to diversify its loan portfolio.
Industry Outlook and Covid-19 impact
Post the AP crisis and regulatory intervention by RBI, the microfinance sector has seen strong growth in loan portfolios on account of improving funding profile, control over operating expenses, improving margins, and moderate leverage levels. The sector has evolved with the advent of credit bureaus in the sector and subsequent control over asset quality. However, it remains exposed to event-based risks and marginal profile of borrowers.
The recent outbreak of Covid-19 is likely to impact asset quality and credit costs. The ability to withstand event risks and avoid further deterioration in the asset quality leading to impact in the overall profitability will be the key considerations.
The collection has improved from no collection in April 2020, to Rs.4.97 crore in May 2020 to Rs.27.78 crore in June 2020 and further to Rs.16.21 crore in July 2020 (till July 15, 2020). Scheduled repayment obligations for Aug 2020 and Sep 2020 (excluding PTCs/DAs) stood at Rs. 14.13 crore and Rs.27.73 crore.
|Total Available Shares:||1000|
|Face Value:||₹ 10 Per Equity Share|
|Lot Size:||250 Shares|
|Current Unlisted Share Price:||₹ 82 Per Equity Share|
Please find below the procedure for buying SMILE Microfinance Unlisted Shares at UnlistedZone.
Please find below the procedure for selling SMILE Microfinance Unlisted Shares at UnlistedZone.
Lock-in period of SMILE Microfinance Unlisted Shares depends upon category of investors.
DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance Unlisted Shares Instantly?
The SMILE Microfinance Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.
The price of SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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.