The shares of this NBFC that provides supply chain financing solutions to Indian conglomerates hit a 20 percent upper circuit after ace investor Madhusudan Kela acquired a 1.7 percent stake in the company for Rs 33 crore.
Stock Performance
With a market capitalization of Rs 2,233.01 crore, SG Finserve Ltd hit a 20 percent upper circuit at Rs 432.65 per share compared to its previous closing price of Rs 360.55 per share. The shares reiterated from the day’s high and were trading at Rs 399.50 which is 11 percent higher than the previous close.
What Happened
Ace investor Madhusudan Kela acquired a 1.7 percent stake or 9.5 lakh shares in SG Finserve Ltd at an average price of Rs 350.01 apiece, totalling Rs 33.31 crore. Meanwhile, Dinesh Pareekh sold 3 lakh shares at an average price of Rs 350 per share, amounting to Rs 10.5 crore.
Company Overview
SG Finserve is an NBFC that provides supply chain financing solutions to Indian conglomerates. Its operations include vendor financing, dealer financing, retailer financing and logistics/transporter finance. Additionally, it engages in investment activities, investment research, investment banking, and wealth management.
Ashish Kacholia holding
Renowned ace investor Ashish Kacholia holds a 1.14 percent stake in the company, representing about 6.4 lakh equity shares.
Financial Performance
As per the latest quarterly filing, the company reported a 19 percent decline in its revenue from Rs 52 crore to Rs 42 crore. The net profits however saw a 9 percent growth from Rs 22 crore to Rs 24 crore.
Target Loan book
SG Finserve has set ambitious targets for its loan book at Rs 2500 crore, Rs 4000 crore and Rs 6000 crore for FY25, FY26 and FY27 respectively.
Written by Shwetha Sairam
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