A Financial Services (Non Banking Finance(MicroFinance) Company) from India is looking to Sellout.
Posted By - Investment Banker
Posted date - 18/01/2022
BUSINESS BRIEF
- It is an NBFC regulated by the Reserve Bank of India. It provides credit facilities to its clients with a reasonable rate of interest in comparison to local money lenders. With this service, the poor women /farmers /artisans meet their credit needs on time and, they are not required to depend on the local market where money lenders exploited them for a long period. Through this loan assistance, the poor clients have also generated their income and improved their standard of living.
- It has promoted more than 2,65,000 Self Help Groups (SHGs) and supported 53,495 SHGs by extending them a line of credit, taking up various income-generating activities, and meeting emergency expenses.
- It has extended its credit facility through three types of lending models. They were offering these types of loans to their clients-
1. Agricultural Loan: This loan is given to the clients for their agriculture needs. It ranges from INR 5,000 to 50,000 with a repayment schedule of 6-18 months.
2. Income Generating Loan: Income generating from Loans will enable women to set up a micro-business. The loan amount starts from INR 50,000 and increases up to INR 2,00,000. The Loan is to be repaid in 24-month installments with an equal principal amount.
3. Livestock Loan: This loan is given to the women clients for generating their income through cattle and goat rearing. The loan amount ranges from INR25,000 to 2,00,000. - Apart from the loan product.It provides other financial services to its clients-
1.Health insurance: It covers-
a) Family Floater group health insurance scheme.
b) Covers all Hospitalization expenses
c) Accidental Insurance
d) Maternity
e) Wage compensation of the Clients
f) Transportation charges to the hospital.
2.Life Insurance:
a) Sum assured as per the premium paying capacity.
b) The premium paying period is 10 years, but the policy period is 15 years.
c) At the time of maturity, the insured will get the total premium paid with a bonus.
3.Asset- The Coverage is against any loss by fire, theft, burglary, and natural calamity such as flood, storm, hurricane, earth quack, draught, etc.Revival Strategy
It has two licenses which can be re-new by paying initial fees & administrative formality with an immediate effect. It currently is at NPA Stage due to various factors like the financial crisis in 2008, other unforeseen factors like external market conditions, past weak legal team, past management behaviors, etc. The promoters & a few trusted employees are still working with the company to revive its operations. The financial institutions & banks still have great faith in the company as a brand to revive & regain its market position. The promoter has a strong belief that post-acquisition & with the financial assistance they can recall their best employees in access of 1000 in a couple of months to re-start the banking operations particularly innine states where recovery rate possibility is greater than 50%.
Proposal
Industry
Financial Services
Sub Industry
Micro finance
Deal Size
INR 112.5 - 150 Cr
Motives For Sellout
Curtailment of losses, Strategic Realignment
Business Operation Information
Industry
Financial Services
Sub-Industry
Micro finance
Division
Division`s Buyers/Customers
Division`s Products/Services
Financial Information |
2019 (in Cr) | 2020 (in Cr) | 2021 (in Cr) | 2022 (in Cr) |
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Sales |
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EBITDA |
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PAT |
N.D | N.D | N.D | N.D |
TOTAL DEBT |
N.D | N.D | N.D | N.D |
