Non- Banking Finance Company (NBFC) Advik Capital has announced its expansion plans. In a company statement, the NBFC said, “We will raise capital with Rs 50 cr rights issue.” “The proceeds will be utilised for expansion,” the statement added.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Advik Capital is gearing up to spread its wings into consumer finance segments as well, the company said.

“Advik has plans expanding into Consumer Loans (Gold Loans & Consumer Durable Loans & more). Personal Loans including Gold Loans, Consumer Durable Financing is on the cards. Basically the company is interested in diversifying into personal loans and micro financing segments which offer higher returns on investments and considering the numbers (population size) and growth in consumption of durables in India, the company expects it to be a viable business model,” Madhur Bansal, Director Finance & CFO, Advik Capital said.

“We believe in giving the best out of our services and serve quality services in the sector which makes us an emerging corporate in the field of financing activities. The satisfaction and trust of our stakeholders is the actual success we earn for a concrete roots,” he added.

Earlier, NBFC Advik Capital said that it is open to exploring partnerships with financial technology companies as it looks to expand business, as per a PTI report.

The company is looking to expand its personal loans, gold loans and consumer durable financing portfolios in addition to its corporate loan segment.

"Advik Capital is open to exploring any possible partnerships or joint (projects) ventures with any possible partner, fintech is an interesting direction and will surely be included in the exploration for expanding business," the company's director (Finance) Madhur Bansal, said.

Advik Capital, which is listed on NSE and BSE, last month launched a rights issue to raise around Rs 50 crore. It plans to deploy the proceeds instantly in hybrid annuity model funding, he said.

"It is almost agreed upon and the final agreements are in process, it will be done and the funding disbursed within April 2022," Bansal said.

On the RBI tightening norms for NBFCs, Advik Capital said that the RBI regulations may pose certain limitations but NBFC business will sustain and grow considering the overall economic growth in India and the segments targetted for Advik business expansion.

Citing an RBI report, the company said Non-Banking Financial Companies (NBFCs) are expected to remain buoyant going ahead, helped by the revival in the economy and an increased pace of vaccinations.

(With PTI inputs)