Company Overview
The company is among the leading ARCs in India, specialized in acquiring distressed debt at reasonable prices and resolving it through the enforcement of securities, rescheduling, or settlement of dues. It procures assets from various sources, including public and private banks, NBFCs, co-operative banks, and other ARCs, irrespective of the sector.
- The expected average return on projects is between 22-24%, which exceeds the average returns for ARCs since the RBI's introduction of the 15:85 subscription mandate.
- AUM of over INR 50 Bn in approximately 5 years since inception, with an average discount of around 73% on cumulative loan value of INR 240+ Bn.
- The cumulative value of redemptions till Sep 2022 was INR 28 Bn, growing at a CAGR of 200%+ during FY2017-22.
- The average operating profit for the past four years was 52%, average ROE (FY19-22) was 12%, and average PAT margins for FY18-22 stand at around 18%.
- Strong relationships with 50+ lenders such as public sector banks (SBI, BOB, PNB), private sector banks (SC, Axis, IndusInd), NBFCs (L&T, Indiabulls, Edelweiss, Tata, KKR), and other ARCs (Arcil, Acre, Phoenix).
Product or Technology Overview
- ARCs have acquired 30-50% of distressed banking assets between FY17 and FY21, indicating that the BFSI industry has growing confidence in the capabilities of ARCs to facilitate complex debt resolution.
- NBFCs have been the highest-growing category of assignors, with an 82% FY18-22 CAGR, compared to PSUs, private banks, and others at 23-35% CAGR.
- The company's strategy involves exploring distressed assets in real estate, infrastructure, and banking, with a particular focus on NBFCs. With reports indicating that banks have stressed assets worth INR 9.5 Tn and a PCR of 69%, there is a significant opportunity for the company to provide a platform for NPAs in the banking sector. Additionally, NBFCs present a potential source of origination for deals, with stressed assets of INR 1.7 Tn and a PCR of 58%.
What the Company is looking for?
Target Country:
Opportunity:
The company is currently seeking to raise INR 1 Bn through primary equity and INR 2 Bn via NCDs to achieve a 2.5x AUM growth target over the next 5 years.
SHOW INTEREST
