The shares of this microcap company surged around 17 percent in Tuesday’s trading session after receiving NSE approval to list its shares. In just one month, the stock has delivered around a 30 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 638 crores, the shares of U. Y. Fincorp Ltd started Tuesday’s trading session on a flatter note at Rs. 30.50. During the trading session, the shares hit a high of Rs, 35.74, gaining around 17 percent and closed the trading session at Rs. 33.51 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that the shares would be listed on the main board of the National Stock Exchange of India (NSE) effective October 3, 2024, under the symbol UYFINCORP.
The company’s shares, which are already trading on the Bombay Stock Exchange (BSE), will now be admitted to dealings on the NSE.
Listing a company on a stock exchange provides several advantages, including access to capital through share issuance, increased visibility and credibility that attract customers and investors, enhanced liquidity allowing shareholders to easily buy and sell shares, and improved transparency and accountability due to regulatory compliance.
Financials:
Looking at the company’s financial statements, the revenue decreased by 9 percent from Rs. 39.21 crores during the March quarter to Rs. 35.64 crores in the June quarter. Contrastingly, the net profits increased by 8 percent from Rs. 4.71 crores to Rs. 5.08 crores during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 71.38 percent. The remaining 28.63 percent of shares are held by Retail Investors.
Future Plan:
U.Y. Fincorp is set to expand its loan financing operations under a new brand named GrowU. This initiative aims to diversify its offerings and tap into various segments of the loan market, enhancing its competitive edge in the financial services sector.
Furthermore, the company plans to diversify into areas such as real estate funding, industrial asset funding, and infrastructure funding.
Company Profile:
U.Y. Fincorp Limited is a non-banking financial company (NBFC) registered with the Reserve Bank of India. The company specializes in providing a range of financial services, including inter-corporate loans, personal loans, and investments in securities.
Additionally, it offers specialized financial solutions such as acquisition funding, lending against land, and asset financing.
Written By Vaibhav Patil
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