### **Overview** Advik Capital Limited is a **non-deposit taking Non-Banking Financial Company (NBFC-ND)**, registered with the Reserve Bank of India (RBI) under registration number **B-14.00724**, and classified in the **Base Layer (NBFC-BL)** category. Headquartered in **New Delhi**, the company was originally incorporated in **1985 as Quick Credit Limited** and adopted its current name in **2017**. It has been an RBI-registered NBFC since **2003** and is listed on the **Bombay Stock Exchange (BSE)** under Scrip Code: **539773**. With over **38 years of operational experience**, Advik Capital has evolved into a diversified financial services provider, focusing primarily on lending, leasing, corporate bridge financing, and investments in securities and emerging businesses. The company operates through a business model rooted in **long-term customer relationships**, trust, and **continuous satisfaction**, rather than transactional interactions. --- ### **Core Business Activities** - **Lending Services**: Offers Gold Loans, Vehicle Loans, Business Loans, Personal Loans, and Property Loans. - **Corporate Lending & Bridge Financing**: Provides short- to medium-term financing solutions to corporates. - **Leasing & Hire Purchase**: Engaged in asset-backed financing activities. - **Investments**: Active in capital markets and inter-corporate investments. - **Supply Chain Finance**: Entered in 2024 via strategic partnership with a leading agri-FMCG player; aims to expand across agri-food, metals, engineering, and FMCD sectors. - **Infrastructure Financing**: Participating in NHAI-backed highway projects such as the **Gohana-Sonepat Highway** and previously funded the **Jind-Gohana Highway** (Rs. 500 million long-term loan under HAM model). --- ### **Growth Strategy (as of Sep 2025)** Advik Capital’s growth strategy centers around **scale, diversification, and operational resilience**, with key pillars including: #### 1. **Geographic & Branch Network Expansion** - Aggressively expanding its **branch network across India**, particularly in **rural, semi-urban, and underserved regions**, to increase customer reach and improve last-mile connectivity. - Emphasis on enhancing **market visibility, revenue growth, and profitability** through improved accessibility. #### 2. **Portfolio Diversification** - Actively entering **adjacent high-growth, profitable lending segments** such as **personal & consumer finance**, **MSME financing**, and **supply chain finance**. - Aims to reduce concentration risk and build a **resilient, diversified loan book**. #### 3. **Systemically Important NBFC Aspiration** - Targeting **systemically important NBFC status by 2025**, aiming for: - Net worth of ~**Rs. 1,100 million** - Total assets of ~**Rs. 2,000 million** - Strengthening internal capabilities by hiring senior talent in **risk management, technology, governance, and operations**. #### 4. **Diversified Funding Model** - Focused on **optimizing cost of funds**, improving **liquidity management**, and gaining **pricing flexibility**. - Pursuing **financial discipline** and leveraging multiple funding sources to enable **competitive loan pricing**. #### 5. **Digital & Fintech Integration** - Leveraging digital platforms to improve efficiency in **gold loan processing**, **credit assessment**, and **customer acquisition**. - Benefiting from rising **digital adoption** in the gold loan market, especially among urban salaried and self-employed borrowers. --- ### **Subsidiaries & Strategic Investments** | Subsidiary | Year Established | Ownership | Key Activities | Notes | |-----------|------------------|---------|----------------|-------| | **Advik Optoelectronics Limited** | 2013 | 100% owned | Manufacturing of emergency safety signage, photo-luminescent products, LED boards, road safety equipment | **Ceased consolidation effective September 30, 2024** | | **Advikca Finvest Limited** | 2022 | 100% owned (with 6 equity shares held by nominees) | Investment in shares, securities, movable/immovable assets; investment advisory | Incorporated with ₹15 lakh investment; set up for capital market expansion and international investment | --- ### **Strategic Initiatives (2022–2025)** #### ✅ **Supply Chain Finance (Launched in 2024)** - Signed an **MoU with a major agri-FMCG company** (confidential) to launch supply chain financing. - Focus: Strengthening financial intermediation in **agri-food, FMCG, metals, engineering goods**. - Aligned with **financial inclusion** and **MSME support goals**. - Scalable model aimed at enhancing supply chain resilience and operational efficiency. #### ✅ **Alternative Investment Fund (AIF) Plans** - In **April 2023**, proposed a **Category II AIF** with corpus target of **Rs. 2,500 million (~Rs. 250 crore)**. - In **November 2023**, reiterated plan to raise **up to Rs. 250 crores**, with **10% sponsor commitment** from Advik Capital. - Investment focus: - **Phase I**: Sunrise sectors – healthcare, infrastructure, manufacturing (via equity, quasi-equity, structured debt) - **Phase II**: Revitalization of **stressed but operational assets** - Positioning the fund in the **performing credit space**, leveraging company’s expertise in listed and private equity markets. #### ⚠️ **ARC Acquisition Pursuit (2023)** - Submitted **Expression of Interest (EoI)** to acquire a **public sector bank-backed Asset Reconstruction Company (ARC)**. - Objective: Expand into **NPA resolution, securitization, and distressed asset management** under SARFAESI Act, 2002. - Would complement existing financial services and diversify revenue streams. --- ### **Market Position & Competitive Landscape** - Operates in a **highly competitive environment** alongside domestic/international banks, other NBFCs, fintech platforms, and unorganized lenders. - **Banks expanding into rural/semi-urban lending** pose competitive pressure with lower funding costs and advanced tech. - **Competitive Advantages**: - Strong regional market understanding - Faster credit decisions & personalized service - Efficient collection systems - Last-mile reach to underbanked populations --- ### **Regulatory & Risk Profile** - Regulated by the **Reserve Bank of India** as an **NBFC-BL (Base Layer)**. - Key risks include: - **Credit risk**: Potential for loan defaults, especially in unsecured or volatile segments. - **Interest rate volatility**: Impacts borrowing and lending spreads. - **Regulatory compliance**: Ongoing need to meet evolving RBI norms. - **Dependence on credit information systems**: Accuracy affects underwriting. - Past performance noted as **not fully indicative of future results** due to evolving business model and ongoing diversification efforts. --- ### **Recent Developments Timeline** | Date | Key Development | |------|-----------------| | **Sep 2025** | Finalizing strategies for competitive pricing, branch expansion, and funding diversification. Emphasizing trust-based customer relationships. | | **Jul 2025** | Reaffirmed focus on NBFC core activities, marketing-driven customer growth, and diversified funding. | | **Sep 2024** | Launched supply chain finance operations via MoU; expanded product offerings into MSME and working capital finance. | | **Dec 2023** | Set goal to become systemically important NBFC by 2025; began strengthening leadership team. | | **Nov 2023** | Proposed AIF launch and filed EoI for ARC acquisition. | | **Feb 2023** | Advanced stage of financing Gohana-Sonepat Highway project; continued infrastructure lending. | | **Oct 2022** | Announced formation of Advikca Finvest Limited. | | **Apr 2023** | Evaluated AIF creation and investment strategy for sunrise sectors. | | **Dec 2020** | Acknowledged past growth constraints but expressed confidence in future performance through operational efficiency. | ---