This NBFC Stock hit a 5 Percent Upper Circuit after it reported its slump sale of Gold loan business to Incred Finance for Rs. 330 Crore including the business’s assets and liabilities.
Share Price Movement
With a market capitalization of Rs. 130 Crore, the stock of TruCap Finance Limited opened at Rs. 11.16 hitting 5 percent Upper Circuit from yesterday’s closing price of Rs. 10.63.
Company Update
The Company has signed a binding term sheet with Incred Finance for the slump sale of its entire gold loan business along with assets and liabilities pertaining to the business.
The total Consideration for the sale of the gold loan business will be approximately Rs 330 Crore. Revenue from this business in FY24 was Rs. 66.40 Crore, Net worth relating to the Gold loan business was Rs. 106.29 Crore, and AUM under it was Rs. 289.82 Crores. The sale is expected to be completed by April 30, 2025.
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Financial Highlights
The company reported a 29.50 percent YoY increase in revenue from Rs. 39.82 Crore in Q3FY24 to Rs.51.57 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 10.54 percent in revenue from Rs. 57.65 Crore in the previous quarter.
Their Net profit saw a decrease of 66.31 percent YoY from Rs. 2.85 Crore to Rs. 0.96 Crore for the same period. On a QoQ basis, the company reported a decrease of 4.95 percent in Net profit from Rs 1.01 Crore in the previous quarter.
About the Company
TruCap Finance Limited, formerly known as Dhanvarsha Finvest Limited, is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI). It specializes in providing credit solutions to Micro, Small, and Medium Enterprises (MSMEs) in India, offering business loans ranging from Rs. 1 lakh to 20 lakhs and secured gold loans up to Rs. 50 lakhs. After Selling their Gold business they will not be offering any gold loans.
Written By Abhishek Das
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