Capri Global surges 12% on getting corporate agency licence

Capri Global Capital Ltd (CGCL) surged 12 percent on January 16 morning after the company announced that it received the licence to distribute life, general, and health insurance products.

The composite Corporate Agency licence given by the Insurance Regulatory and Development Authority of India (IRDAI) will help it to further diversify its product offerings and strengthen its fee income, the non-banking finance company said in a regulatory filing.

At 10.13 am, CGCL was trading 12 percent higher at Rs 913 on the National Stock Exchange (NSE). In the last month, the stock has surged nearly 20 percent, outperforming the benchmark Nifty, which gained 3 percent during the period.

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CGCL aims to leverage its robust branch network in north and west India to cross-sell insurance products. “CGCL shall offer tailored insurance solutions to its borrower clients giving them an option to cover themselves comprehensively against life and non-life risks,” it said.

The company plans to automate claims processing and customer support services by reducing cost of operations. The platform will adopt a payment policy that includes digital wallets, credit cards, net banking and debit cards.

CGCL offers retail loans in MSME, affordable housing and gold loan segments. The company mainly lends to borrowers in the self-employed non-professional category.

Its consolidated assets under management (AUM) stood at Rs 12,360 crore (59 percent YoY) in the September quarter. The non-interest income for half-year ended September 30 was Rs 160.7 crore, up 58 percent.

Capri Global Capital is targeting AUM of more than Rs 15,000 crore for the financial year 2025.

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“CGCL’s active client base increased 5x YoY to 270K as of September 2023. The rapidly increasing client relationships offer CGCL a captive base to improve insurance penetration. This will also help CGCL strengthen its fee income and deliver better return to its stakeholders,” CGCL MD & CEO Rajesh Sharma said.

The company expects to generate a net fee income of Rs 20 crore from insurance cross-sell in FY25, he added.

CGCL will release its December quarter numbers on January 27.

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