ICL Fincorp is a non-banking financial company which was initially started in the year 1991 which specialises in gold loans. Its AUM is made up of 90% business from gold loans. Other than just stopping with gold loan, the other different services offered by the organisation includes Business Loans, Vehicle Loans, Property Loans, Health Insurance (through a partnership with Liberty Videocon), and a lot more. This is a major reason for us to promote you to Buy ICL Fincorp Unlisted Shares which suggests that management is optimistic about the company's future performance. In their most recent round of funding, the promoters increased their ownership to around Rs. 20 per share. As evidenced by its branch development, ICL Fincorp has been doing well. In just four years, it has more than doubled its branch count from 77 in 2016 to 163 in 2020. The company's corporate licence for the Insurance Business completion has come to an end. This actually resulted in increased revenue. Salem Erode Investments, which has a 74 percent ownership in the company, will expand its network by 157 branches throughout five states in South India. The firm has set a goal of expanding its branch network to 1000 locations by 2022. If you are to Buy ICL Fincorp Unlisted Shares, definitely your investment is worthy.
Though in 2020, the company's operations were disrupted, now business and recoveries have both increased, and the company does not anticipating any significant impact on loan credit quality. It considered instituting a policy of offering customers a moratorium, but the response from branch personnel and recoveries never forced them to do so. During the pandemic, gold prices skyrocketed, proving to be a boon to the corporation. It is a wise decision to Buy ICL Fincorp Unlisted Shares as the expansion goals are sound, and the business model based on gold loans, is projected to succeed. ICL Fincorp has carefully reduced its LTV to 70% in order to protect itself from the danger of non-performing assets (NPAs) associated with gold loan accounts, which have been kept below 1% through regular gold auctions. ICL Fincorp's assets under management increased by 31% in FY20, while on-balance sheet assets increased by 36%. In FY20, the business AUM (including on book, assigned, and net of provisions) was Rs. 249 crores, compared to Rs. 189 crores in FY19. Fortunately, the target bought is debt-free, profitable, and provides a listing for the parent, giving it better chances to obtain capital at better prices for future expansion. Nadar securities would promote you to Buy ICL Fincorp Unlisted Shares.