NBFC for Sale in Mumbai, India
For Sale: 20-year-old profitable nbfc in MMR.
This transaction has concluded.
Premium Plan
| Established | 30-40 year(s) |
| Employees | 10 - 50 |
| Legal Entity | Public Limited Company |
| Reported Sales | USD 320 thousand |
| Run Rate Sales | USD 350 thousand |
| EBITDA Margin | 32 % |
| Industries | NBFC |
| Locations | Mumbai |
| Local Time | 10:22 AM Asia / Kolkata |
| Listed By | Management Member |
| Status | Active |
Full Sale
Asking Price:
USD
2.9 million
(Native Currency: INR 250,000,000)
Reason: Promoters' inability to provide further leverage for growth. Company is looking for a valuation of 2...
View More
Includes physical assets worth
USD
26.7 thousand
Interested to connect with advisors
Documents
ROC-Verification.pdf
(62.2 KB)
Business Overview
- Company has recently collaborated with professionals from the housing finance industry who are currently managing the firm. The company believes in its highly experienced team with specialized knowledge in affordable housing segment to achieve the business target (total lending) of around INR 750 crore in the next 5 years.
- Company operates on a blended business model with a focus on traditional business model along with asset light co-lending model. Currently, we have an on-going co-lending arrangement with another housing finance company to provide affordable housing loans to customers. To any new customer, we provide 20% of loan and our co-lending partner provides 80% of loan.
- Sources of funds: Company has 2 sources of funds i. e. equity (INR 10 crore) and loan from a commercial bank (INR 1.5 crore @11% annual interest). Recently, the company has secured refinance of INR 3.2 crore @7% annual interest from the regulator (NHB) under various schemes which validate the company’s processes, policies, and system. Owing to the overall improvement across all matrices, the company was able to re-affirm credit rating from CARE for the current financial year.
- Typically, we provide loans for 15-20 years and at 14-16% annual interest rate to our customers. As of the last financial year, the company has a loan book of INR 15 crore.
- Our business philosophy is based on providing affordable housing loans primarily to first time home buyers and for self-use purposes. The average ticket size of the company's portfolio is about INR 8 lakh while the LTV is around 65% which confirms adherence to the exemplary risk management system. Company has been able to maintain 65% of LTV over the years.
- Revenue stream: Company has 3 revenue streams i. e. interest income, processing fees and commission on insurance. We have tie-ups with 2 insurance companies. Company has a NPA of 1.87%.
- With the on-going moratorium, our revenue hasn't been impacted but our collection period has increased. Last year, our collection was 100% but this year it's approx 70%.
- Company operates on a blended business model with a focus on traditional business model along with asset light co-lending model. Currently, we have an on-going co-lending arrangement with another housing finance company to provide affordable housing loans to customers. To any new customer, we provide 20% of loan and our co-lending partner provides 80% of loan.
- Sources of funds: Company has 2 sources of funds i. e. equity (INR 10 crore) and loan from a commercial bank (INR 1.5 crore @11% annual interest). Recently, the company has secured refinance of INR 3.2 crore @7% annual interest from the regulator (NHB) under various schemes which validate the company’s processes, policies, and system. Owing to the overall improvement across all matrices, the company was able to re-affirm credit rating from CARE for the current financial year.
- Typically, we provide loans for 15-20 years and at 14-16% annual interest rate to our customers. As of the last financial year, the company has a loan book of INR 15 crore.
- Our business philosophy is based on providing affordable housing loans primarily to first time home buyers and for self-use purposes. The average ticket size of the company's portfolio is about INR 8 lakh while the LTV is around 65% which confirms adherence to the exemplary risk management system. Company has been able to maintain 65% of LTV over the years.
- Revenue stream: Company has 3 revenue streams i. e. interest income, processing fees and commission on insurance. We have tie-ups with 2 insurance companies. Company has a NPA of 1.87%.
- With the on-going moratorium, our revenue hasn't been impacted but our collection period has increased. Last year, our collection was 100% but this year it's approx 70%.
Products & Services Overview
Individual housing loans, loan against property and plot & construction housing loans.
Assets Overview
Physical assets include 8 laptops and multiple furniture.
Facilities Overview
Headquartered in Mumbai and currently operating in MMR. Have a rented facility of 2,000 sq ft.
Capitalization Overview
Not Disclosed
Recent Activity
-
Earlier than 15 daysDirector, Food Services, Hyderabad, Corporate Investor / Buyer connected with the Business
-
Earlier than 15 daysManaging Director, Junagadh, Business Broker connected with the Business
-
Earlier than 15 daysSenior Manager, Lending Firm, Mumbai, Corporate Investor / Buyer connected with the Business
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct. Note that SMERGERS is not liable for any loss, damage, costs, claims and expenses whatsoever arising from transacting with any other user from the website. The final responsibility of conducting a thorough due diligence and taking the transaction forward lies with the users. Please read best practices on SMERGERS.
