SMILE Microfinance Unlisted Shares

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.

FY19-20 Performance

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.

SMILE Microfinance Unlisted Shares Details:

Total Available Shares:	1000
Face Value:	₹ 10 Per Equity Share
ISIN:	INE786V01012
Lot Size:	250 Shares
Current Unlisted Share Price:	₹ 82 Per Equity Share

Promoters And Management:

The company is currently managed by Mr. Murali Srinivas, who is the Managing Director & CEO of the company. He has 20 years of experience in the Corporate & Development Sector, viz., Microfinance, Insurance, Bottled Water, and Business Process Outsourcing. The company has 7 directors in the board including Managing Director, 2 directors representing DWM Investments (Cyprus) Limited, 2 independent directors, 1 non-executive director, and 1 director representing promoter.

Shareholding Pattern:

DWM Investments (Cyprus) Limited holds 66.6% in the company.

Financials of SMILE Microfinance Unlisted Shares:

(Figures in Crores)

Year	Revenue	PAT	NPM	Shares	F.V.	EPS	Book Value
2016	37	2	7.09%	1.73	10	1	48
2017	71	8	11.70%	1.73	10	4	53
2018	101	16	16.57%	1.73	10	9	63
2019	116	25	22.20%	1.73	10	15	78
2020	129	12	9.30%	1.73	10	7	83
2021	117	-9	-7.69%	1.73	10	-5	79

Year	Loan Book	NIM	NW	Debt/NW	GNPA
2016	140	5.48%	84	1.17	0.05%
2017	311	8.08%	92	1.94	0.03%
2018	473	12.45%	109	2.43	0.02%
2019	505	14.60%	132	1.84	0.05%
2020	590	11.30%	143	0.88	0.22%
2021	437	12.84%	136	2.04	3.60%

Annual Report 2021 Annual Report 2020 Annual Report 2019 Annual Report 2018 Annual Report 2017

Company Address:

14/25, Chakrapani Street, West Mambalam, Chennai 600033.

Frequently Asked Questions:

Please find below the procedure for buying SMILE Microfinance Unlisted Shares at UnlistedZone.

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

1. We will confirm our buying price of SMILE Microfinance Unlisted Shares.
2. We will give you our client master report and you will transfer the SMILE Microfinance Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the SMILE Microfinance Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance Unlisted Shares.
- b. Name of SMILE Microfinance Unlisted Shares
- c. Quantity of SMILE Microfinance 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 SMILE Microfinance 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 SMILE Microfinance 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 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?

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 SMILE Microfinance Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

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.

1. We check the last funding that is being done in the SMILE Microfinance 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 SMILE Microfinance 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 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.

Discussion on SMILE Microfinance Unlisted Shares:

4 Comments

Umesh Paliwal

11:33 AM, 5 July 2021

Audited results for FY 2020-2021

https://dyvmwwyqozzzb.cloudfront.net/main/WhatsApp-Image-2021-07-02-at-9.12.29-AM.jpeg

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krishna19

1:42 PM, 18 September 2020

What is the current price and EPS for 2020. Can I buy 100 shares?

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Market Wizard

3:27 AM, 20 September 2020

This information is yet not made public by the company. Will update the same when it be announced.

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Market Wizard

3:28 AM, 20 September 2020

Yes, you can buy 100 shares. Just drop us an email at sales@unlistedzone.com

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SMILE Microfinance Unlisted Shares

SMILE Microfinance Unlisted Shares Details:

Promoters And Management:

Shareholding Pattern:

Financials of SMILE Microfinance Unlisted Shares:

Company Address:

Frequently Asked Questions:

Discussion on SMILE Microfinance Unlisted Shares:

4 Comments

Umesh Paliwal

krishna19

Market Wizard

Market Wizard

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