Non-banking finance company (NBFC) Advik Capital has announced its expansion plans. In a statement from the company, the NBFC said: “We will be raising capital with a Rs 50 cr rights issue.” “The proceeds will be used for expansion,” the statement added.
Advik Capital is also preparing to spread its wings in the consumer credit segments, the company said.
“Advik has plans to expand into consumer lending (gold loans and consumer sustainable loans and more). Personal loans, including gold loans, consumer sustainable finance are on the cards Basically, the company wants to diversify into the personal loan and micro finance segments which offer higher returns on investment and given the number (size of population) and growth in consumption of durable goods in India , the company expects this to be a viable business model,” Madhur Bansal, CFO and Chief Financial Officer of Advik Capital.
“We believe in giving the best of our services and serving quality services in the sector, which makes us an emerging company in the field of financing activities. The satisfaction and trust of our stakeholders is the real success we gain for concrete roots,” he added.
Earlier, NBFC Advik Capital said it was open to exploring partnerships with fintech companies as it seeks to grow its business, according to a PTI report.
The company is looking to expand its personal loan, gold loan and consumer sustainable finance portfolios in addition to its corporate loan segment.
“Advik Capital is open to exploring potential partnerships or joint ventures (projects) with any possible partner, fintech is an interesting direction and will surely be included in the exploration for business expansion,” said the company director (Finance) Madhur Bansal.
Advik Capital, which is listed on NSE and BSE, launched a rights issue last month to raise around Rs 50 crore. It plans to roll out the product instantly in funding the hybrid annuity model, he said.
“It’s almost agreed and final agreements are underway, it will be done and the funding will be disbursed by April 2022,” Bansal said.
Regarding RBI’s tightening standards for NBFCs, Advik Capital stated that RBI regulations may pose some limitations, but that NBFC’s business will continue and grow given the overall economic growth in India and targeted segments for the expansion of Advik’s business.
Citing an RBI report, the company said Non-Banking Financial Companies (NBFCs) are expected to remain buoyant going forward, helped by the recovering economy and accelerating pace of vaccinations.
(With PTI inputs)