The shares of this financial service provider gained up to 6 percent after the company achieved milestones toward becoming a systematically Important NBFC.
With a market capitalization of Rs 103.19 Crores. Advik Capital Ltd, On Thursday, The shares were trading at Rs 2.41 a share, an increase of 4.78 percent from the previous closing price.
According to the company filing, Advik Capital Ltd., with a net worth of about Rs. 1,100 million and total assets of approx. Rs 2,000 million, has reportedly reached another significant step in its journey to become a systematically important NBFC.
Additionally, Advik Capital’s strategic business decision to become a Systematic Important NBFC by 2025 will enhance its standing in the financial market by enabling it to provide clients with more structured products.
Advik Capital Management has already started putting its expansion plan into practice in addition to the previously mentioned paragraph, with the goal of diversifying into cutting-edge, futuristic industries and expanding its portfolio.
Furthermore, The Reserve Bank of India only classifies an NBFC as systemically important if its assets total at least ₹ 500 crore. Systemically important non-bank financial institutions (NBFCs) are deemed crucial and significant entities as they impact the financial stability of the economy as a whole.
Looking into the company’s performance revenue decreased by 31 percent from Rs 228.3 Crore in Q2FY23 to Rs 157.43 Crore in Q2FY24. During the same period, net profit increased by 1 percent from Rs 6.07 crore to Rs 6.13 crore.
As of September 2019, non-bank lenders accounted for over INR 35.9 lakh crore, or roughly 25% of all outstanding systemic credit. They have financed over 10 crore customers, primarily in rural and semi-urban areas, where they have a substantial presence with 70% of all branches.
Investment of capital, lending to industries, and leasing operations financing are the activities of Advik Capital Ltd.
Written by:- Abhishek Singh
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