Fincare Business Services Ltd

₹99.00
PLACE ORDER

ROFR Required
No

Available in Depository:
NSDL
CDSL

Available for Investment:
Primary
Secondary

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

Investment Checklist

Management

Accounting Practice

Profitability

Solvency

Growth

Valuation

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

Fincare Business Service Unlisted Shares Essentials
Share

ISIN

INE957R01025

Face Value

₹1.00

Total Share

32,84,17,440

Total Income

₹562.00 Cr

Profit After Tax

₹70.37 Cr

EPS

₹1.93

P/E

51.30

P/B

4.01

Market Capitalisation

₹3,251.33 Cr

Enterprise Value

₹5,380.04 Cr

Book Value

₹24.67

Intrinsic Value

₹133.88

Earnings Yield

1.95 %

Sector

Financials

Sub-sector

Diversified Financials

Fincare Business Service Growth

About Fincare Business Service

Fincare Business Service Limited(FBSL) is a Non-Banking Financial Company-Non Deposit-taking Core Investment Company (NBFC-CIC-ND) registered with the Reserve Bank of India (RBI).
The company's operations and activities are limited to investing in and providing loans to a group company i.e., Fincare Small Finance Bank Limited.
FBSL, operates as a holding company for Fincare Small Finance Bank, which lends to under-penetrated and under-served areas of the company. incare Business Services Private Limited that provides banking and financial services.
The company was incorporated primarily as a private company under the Companies Act,1956, to manage the capital requirement in associate companies and also provide financial management and consultancy services. The Company has converted into a non-deposit accepting Non- Banking Financial Company - Core Investment Company (NBFC - CIC) with effect from 2 February 2017.
The company has its registered office in Bengaluru, Karnataka.

Fincare Business Service IPO Details

As of March'22, the company doesn't have any plan for IPO.

Fincare Business Service Funding

Funded By	Funding Amount	Date of Investment	Fund Name
investors LeapFrog Investments, Kotak Mahindra Life Insurance Company Limited, Edelweiss Tokio Life Insurance Company Limited, SIDBI Venture Capital Limited, TA Associates Management, L.P., Tata Opportunities Fund, L.P.,	₹ 950 M	Aug 2018	Private equity round
-TA Associates Management, L.P., SIDBI Venture Capital Limited, existing investor True North (Managers), Kotak Mahindra Old Mutual Life Insurance Ltd., Edelweiss Tokio Life Insurance Company Limited, and Tata Opportunities Fund, L.P.	₹ 5000 M	Mar 2017	Private Equity Round

Fincare Business Service Merger & Acquisition

Acquisition

On 26 September 2019, the directors of the Company approved the acquisition of Lok Management Services Private Limited ('LOK') by way of a Scheme of Amalgamation. The entity was merged with the company vide RD order dated March 5, 2020.

Fincare Business Service Subsidiaries

As of March'22, the company has one subsidiary i.e. Fincare Small Finance Bank

Fincare Business Service Business Model

The primary purpose is to oversee the capital requirements of affiliated companies and to offer consulting and financial management services. With effect from February 2, 2017, the Company has changed into a Non-Banking Financial Company - Core Investment Company (NBFC - CIC) that does not take deposits. The main operations and activities of the company are to invest in and provide loans to group companies.

Fincare Business Service Revenue Segmentation

Interest Income
Other financial charges

Income on investment
Other Income

Fincare Business Service Product & Services

Invest and provide loans to group companies.

Fincare Business Service Assets

As of 31st March'2021, the company has fixed assets worth 109.4 crores.

Assets	Amount In Rs.(crores)
Right-of-use asset	73.93
Land	0.23
Furniture and Fixtures	8.30
Computers & equipments	6.01
Office Equipment	8.57
Leasehold improvement	11.74
Vehicles	0.64

Fincare Business Service Industry Overview

Industry Statistics

A non-deposit accepting Non-Banking Financial Company ('NBFC-ND') is supposed to be registered as a Non-Banking Financial Company with the Reserve Bank of India (“RBI”) under section 45-IA of the Reserve bank of India Act, 1934. These companies do not accept public deposits but raise debt from the market and banks.
Within the NBFC-ND segment, systemically important(SI) NBFCs are those with an asset size of Rs.500 crore or higher. NBFC-ND-SI controls roughly 86.3% of the entire asset size of the NBFC segment (Rs.30.9 lakh crore), while the government-owned NBFCs hold 36% of the total share as per "RBI Trends and Progress of Banking in India".

The NBFC-ND-SI companies account for about 80% of the NBFC sector's total income, while the income and net profit of NBFC-Deposit companies as a percentage of total assets is higher as compared to NBFC-ND-SI.(it accounts for approximately 23% share in the net profit of NBFCs).
The NBFC-ND-total SI's cost-to-income ratio climbed from 68.3% in FY17 to 81.2% in FY20, showing an increase in operational expenditure. On the other hand, the cost-to-income ratio of NBFC-Ds increased from 80.9% during FY17 to 84.70% during FY20, which resulted in a higher profitability.
In terms of asset quality, NBFCs-D outperformed NBFCs-ND-SI in 2020. In 2020, they showed a little decrease in their GNPA ratio, which was helped by steadily increasing payments. More than 90% of all outstanding debt is held by investment and credit firms and infrastructure finance companies; as a result, non-performing assets in these two categories are increasing the GNPA ratio for the NBFC sector as a whole.

Future Prospects

The company's future growth is directly related to its subsidiary's growth i.e Fincare Small Finance Bank.

India Banking Market is projected to grow at a double-digit CAGR during 2019-2024 owing to rising disposable income, growing digital payment system in the country, growing bank branch networks, athe nd entrance of foreign banks in the Indian market.
According to RBI, bank credit and deposits stood at Rs.106 lakh Cr. and Rs. 146 lakh Cr. respectively, as of January 15, 2021.
India is expected to be the fourth largest private wealth market globally by 2028.
As per CRISIL the share of SFBs in deposits as well as credit has seen a steady rise over the years and is expected to reach 1% and 1.5% respectively by Fiscal 2024 from the current 0.6% and 1.0% in deposits and credits in Fiscal 2021.
According to CRISIL, SFB’s AUM clocked 26% CAGR during fiscals 2016-2021. CRISIL research expects the sector’s loan portfolio to see a strong ~22% CAGR in the near term as most of the SFBs have completed the transition phase and likely to get benefit from the operating leverage.
The share of SFBs in deposits as well as credit has seen a steady rise over the years and is expected to reach 1% and 1.5% respectively by fiscal 2024 from the current 0.6% and 1.0% in deposits and credits in fiscal 2021. This will be on the back of robust growth on account of focused penetration and on the ground reach of these entities in comparison to the other more established player groups.
In terms of branches, the share of SFBs in total branches is lowest in the Eastern and the Central region followed by the Northern region. These areas are still largely dominated by public sector banks. This provides considerable opportunity to SFBs to gain further share through their specialised offerings and expanding their services to the underbanked.

Fincare Business Service Strengths

Fincare Small Finance Bank, a subsidiary of the corporation that has tremendous potential for future growth, receives investments and loans from the company, creating room for the latter's expansion.
The company Introduced a Video KYC (VKYC) option for account opening - this enables the customer to open a completely digital Full KYC account, and increased the business penetration.
It Updated WhatsApp Banking – migrated from a Menu-driven interface to Natural Language Processing based Multi-lingual and conversational BOT, which will increase the customer base for the company.
Introduced tab-based gold loan application – this enables processing of gold loans, disbursement, collections, renewals & closures, all on the tab.
Introduced Virtual debit cards – this enables customers to use a debit card seamlessly in a contactless manner.

Fincare Business Service Shortcomings

Fincare Business Services Limited's major revenue comes from its subsidiary only, which makes it totally dependent on it, any impact on its subsidiary will also impact its business.

Fincare Business Service Opportunities

Fincare Business Services Limited's subsidiary which is the main source of its revenue can have a Diversified distribution network with significant cross-selling opportunities. The total unbanked population in India is 190 million which offers it a huge opportunity to cater to this population.

Fincare Business Service Threats

Rise in interest rates by RBI.
RBI has acknowledged that such CICs rightly rationalize a different treatment in the regulatory recommendation pertinent to Non-Banking Financial Companies that are non-deposit taking and systemically significant.
It is now determined by RBI that only those CICs have an asset size of Rs. 100 crore and above would be treated as systemically significant core investment companies. They would necessitate registration with the Reserve Bank and would be given a discharge from the safeguarding of net owned fund and revelation norms subject to certain circumstances.
Capital necessities: Every CIC shall make sure that at all times it maintains a minimum Capital Ratio whereby its accustomed Net Worth shall not be less than 30% of its cumulative risk subjective assets on the balance sheet and risk accustomed value of off-balance sheet items as the date of the last audited balance sheet as at the end of the financial year.
Leverage Ratio: Every CIC shall make sure that its external liabilities at all times shall not surpass 2.5 times its Adjusted Net Worth as on the date of the last audited balance sheet at the conclusion of the financial year.

Fincare Business Service Rating

RECOMMENDATION

Sell

Fincare Business Service Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

07/09/2022

Registered Date

05/08/2014

Planify Ticker

FBSL

Reg Office: L-41, Connaught Circus, Outer Circle, New Delhi, 110001, India

Website Visit

Frequently Ask Questions

Please find below the procedure for buying stock_name_auto Unlisted Shares at Planify.

• 1. You confirm booking of stock_name_auto Unlisted Shares with us at a trading price.

• 2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.

• 3. We will provide the bank details.

• 4. You need to transfer funds in that account.

• 5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.

• 6. Payment has to be done from the same account in which shares are to be credited.

• 7. We will transfer the shares in 24 hours if funds are credited before 2 pm.

Important Note: Please note that the lock-in period for selling stock_name_auto Unlisted Shares is 6 months after listing. Hence you can’t sell stock_name_auto Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date.

Please find below the procedure for selling stock_name_auto Unlisted Shares at Planify.

• 1. We will confirm our buying price of stock_name_auto Unlisted Shares.

• 2. We will give you our client master report and you will transfer the stock_name_auto Unlisted Shares to our demat account.

• 3. We will ask for bank details of yours once the stock_name_auto Unlisted Shares are received in our demat account..

• 4. We will transfer the funds in your bank account within 24 hrs of receiving the stock_name_auto Unlisted Shares.

• 5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.

• 6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of stock_name_auto Unlisted Shares depends upon category of investors.

• 1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of stock_name_auto Unlisted Shares.

• 2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of stock_name_auto Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the stock_name_auto Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.

• a. ISIN number of stock_name_auto Unlisted Shares.

• b. Name of stock_name_auto Unlisted Shares

• c. Quantity of stock_name_auto Unlisted Shares

• d. Cosideration Amount

• e. Target DP ID and Client ID

• f. Annexure

2. Online DIS - Some of the broker these days gives facility of transferring the stock_name_auto Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the stock_name_auto Unlisted Shares by filling the details similar to Ofline-DIS.

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. Generally via our Planify platform, if somebody wants to buy Unlisted Shares then minimum investment would be 35-50k.To know about the minimum lot size of stock_name_auto, kindly click on this hyperlink - stock_name_auto.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable.

If you buy stock_name_auto Unlisted Shares from Planify then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of stock_name_auto Unlisted Shares Instantly?

• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.

• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.

• Demat Account = DP ID + Client ID. (16 Characters )

• "DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.

• Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.

• In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.

• Example:

• CDSL = 12345678(DP ID) and 91234567(Client ID).

• NSDL = IN123456 (DP ID) and 78912345(Client ID).

• Check in brokers application?

• Credit of stock_name_auto Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The stock_name_auto Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of stock_name_auto Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on Planify.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"Planify is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, Planify has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with Planify."

We at Planify do the valuation based on 2 methods.

• 1. We check the last funding that is being done in the stock_name_auto Unlisted Shares to ascertain the benchmark valuation.

• 2. If there is no funding happened in the company, then we try to find a business similar to stock_name_auto Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their stock_name_auto Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their stock_name_auto Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about stock_name_auto Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of stock_name_auto Ltd unlisted share.

We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of stock_name_auto Ltd unlisted shares with us.

The financials of stock_name_auto Ltd which includes the P/L of stock_name_auto Ltd and the Balance Sheet of stock_name_auto Ltd is in the financials section.

The annual report of stock_name_auto Ltd is available in the annual report section.