Fincare Small Finance Limited Unlisted Shares

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₹ 160

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₹ 195

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Company Overview

Incorporated in 2017, Fincare Small Finance Bank has built a leadership position in serving underbanked and micro and small business segments of India. 

As on 31-March-2021, the bank had 550 branches spread across 12 states and 3 union territories.  The bank reported a total loan portfolio of Rs 6,072 crores, total deposits of Rs 5,318 crores and net interest margin of 9.87%. The bank reported Gross NPA and Net NPA of 6.42% and 2.80% of the total advances respectively. The CRAR ratio of the bank was 29.6% against the minimum limit of 15% for small finance banks. 

As on 31-March-2021, the bank had 6,36,10,481 total outstanding equity shares of face value of Rs 10 each and the largest shareholder of the bank was Fincare Business Services Pvt Ltd, owning 88.07% of the total shares.   

In May, 2021, the bank filed DRHP with SEBI to bring the primary issue of shares worth Rs 330 crores and offer for sale of shares upto Rs 1,000 crores. 

Business Model

Fincare Small Finance Bank offers savings bank account, current account, fixed deposits, NRI fixed deposits, micro loans, cash overdraft, gold loans, loan against property, two-wheeler finance to its consumer segment customers.

Besides, the bank also offers institutional finance including term loans to enterprise customers upto Rs 15 crores. 

Registered Address

The registered office of the company is located at 301-306, 3rd Floor, Abhijeet – V Opposite Mayor Bungalow, Mithakhali Ahmedabad.  

Key Business Highlights

  1. Fincare SFB had the highest advances growth rate (72%) during fiscal 2018-2020
  2. At 3.7%, Fincare SFB reported the highest adjusted return on assets (ROA) among all small finance banks during FY 2020. 
  3. Fincare SFB is a well-capitalised bank among its peers.
  4. Fincare SFB reported the highest yield on advances (24.9%) among all players during fiscal 2020. 

Ratio

RatioFY22FY21
No of shares Outstanding220,779,72063,610,481
Operating Margin26%26%
Net Profit Margin1%8%
Return on Equity 1%11%
Debt-Equity1.521.04
Dividend Payout0%0%

Financial Highlights

Particulars2021-222020-212019-202018-192017-18
Total Income (₹ Crores) 1647.651378.411215.72674.99350.61
PAT (₹ Crores) 8.87113.14143.45101.98-97.55
Diluted EPS 0.3817.7924.4322.41-26.04
Book Value per Share (₹) 54.15159.87142.08118.0190.11
Equity (₹ Crores) 1195.481016.91903.77666.00337.55

Note:- During the year 2021-22, 99,82,759 fresh equity shares being issued and 14,71,86,480 Bonus equity shares are being issued too.

Financial Charts

 

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Shareholding Pattern

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Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
FINCARE SMALL BANK LTD43050.54%4.07%0.74%1.52513.163.6054.15
FEDERAL BANK LTD2319413.66%1.76%10.07%1.0210.231.0593.03
RBL BANK LTD5926-1.96%2.58%-1.32%0.89-47.000.62209.01

Media Updates

Frequently Asked Questions 

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid. 

The procedure to buy the Fincare Small Finance Bank unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.  

The Fincare Small Finance shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Fincare Small Finance unlisted shares, please visit the stock page on our website: www.delistedstocks.in  

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Fincare Small Finance Bank unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.  

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Fincare Small Finance Bank unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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