Small-cap NBFC with a presence across different segments like MSME, Construction Finance, Affordable Housing, and Indirect Retail Lending jumped 13 percent upon plans to develop an insurance platform to maximize benefits from the corporate agency license it has received.
At 11:55 a.m the shares of Capri Global Capital Limited were trading at Rs. 915.75, up 12.61 percent from its previous day’s close price of Rs. 813.20 and its market capitalization is Rs. 18,910 Crores.
Capri Global Capital Limited received a corporate composite agency license from the Insurance Regulatory and Development Authority of India (IRDAI) to distribute life, general, and health Insurance Products.
The Insurance business is expected to generate a net Insurance Income of ~Rs. 20 Crore in FY 2024-25 and there will be an expected approximate increase in variable cost in the range of Rs. 2-3 Crore on an annual basis.
Following the receiving of the license it has announced its plans to develop an insurance platform to maximize benefits from the corporate agency license. The new platform will enable it to automate claims processing and customer support services, thereby reducing the cost of operations.
The main goal of the new platform will be to create an ecosystem of insurers who can offer coverage in a more affordable, customer-centric way. This will assist it to contribute to the ‘Insuring India by 2047’ mission of IRDAI.
Capri Global Capital Limited is a Non-Banking Financial Company (NBFC) with a diversified product portfolio providing, MSME Loans, housing finance, gold loans, construction finance, And many more, by tying up with banks like HDFC Bank, Union Bank of India, Yes Bank and etc and As of September 2023, it has 917 branches in 14 states & UTs across North and West India with over 10,150 employees.
As of Q2FY24, it has an AUM of Rs. 12,358 Crores and as of H1FY24, it has made disbursals of Rs. 6,213.9 Crores. It has set a target to achieve an AUM of Rs. 300 Billion by FY27E.
The company’s revenue from operations grew 49.27 percent from Rs. 980.31 Crores in FY22 to Rs. 1,463.35 Crores in FY23, accompanied by profits of Rs. 205.04 Crores to Rs. 204.65 Crores.
Written by: Bharath K.S
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