Satin Creditcare Network to consider raising funds; shares jump 4%

Satin Creditcare Network shares gained 4.4 percent in trade on January 11. The microfinance institution will consider raising funds via NCDs.

Satin Creditcare Network’s Board of Directors will be meeting on January 15 to consider the proposal of raising funds through the public issue of non-convertible debentures. The fund-raising will be within the borrowing limits approved by the shareholders, in one or more series/ tranches.

As of 12.15 pm, shares of the firm were trading at Rs 275.4 apiece on the BSE, higher by 1.4 percent in comparison to the previous session’s closing price.

Over the past six months, shares of the company have surged 57.91 percent. In comparison, the benchmark index, Nifty 50 has risen 11.43 percent during the same time period.

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“The company is experiencing strong growth as it is well-positioned to take advantage of the upcycle in the microfinance sector. The quality of the company’s portfolio has been consistently improving with an increase in the provision coverage ratio,” said SBI Securities, in a note. The brokerage initiated coverage with a ‘buy’ rating and target price of Rs 324.1, implying an upside of 25 percent.

Satin Creditcare Network is one of India’s largest Microfinance Institutions (MFI) in terms of Gross Loan Portfolio, operating out of Gurugram with a strong presence in North India. It started in 1990 as a provider of individual and small business loans and savings services to urban shopkeepers.

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