Marg Techno Projects Limited is a **Non-Deposit Taking NBFC (Base Layer)** registered under Section **45-IA** of the RBI Act. Historically focused on traditional credit products for underserved rural and semi-urban markets, the company is currently undergoing a radical strategic pivot toward becoming a **Fintech and Digital Payments ecosystem** provider. --- ### **Strategic Transformation: The Pivot to "Amrutam" Fintech** The company is transitioning from a conventional lender to a technology-driven financial services provider. This shift is reflected in the proposed rebranding to **'Amrutam'** and a formal amendment to the Memorandum of Association (MOA). * **Bharat Connect (BBPS) Integration:** Authorized to operate as a **Bharat Bill Payment Operating Unit (BBPOU)**. The company will act as an Agent Institution and Business Correspondent for digital collection and settlement of utility bills, insurance premiums, and taxes. * **Fintech Infrastructure Development:** Plans include designing and operating proprietary payment gateways, digital wallets, and **API banking solutions**. * **Phygital Expansion:** Building a "Physical + Digital" network through a franchise model of kiosks and **Point-of-Sale (POS)** devices, complemented by mobile and web platforms. * **Wholesale Lending:** Expanding into **NBFC-to-NBFC lending**, with a target to reach disbursements toward a **₹100 crore AUM** by **FY 2025-26**. * **Global Ambitions:** The Board has approved the formation of an **overseas subsidiary** to facilitate international expansion of its digital financial services. --- ### **Core Credit Portfolio & Lending Operations** Despite the digital pivot, the company maintains a robust traditional lending framework focused on the informal sector: * **Gold Loans:** The primary secured lending product serving MSMEs and agriculture. The company is implementing **doorstep and technology-enabled** gold loan services to improve accessibility. * **Structured & Demand Credit:** Includes short-term demand loans for immediate liquidity and structured products like term loans, lease finance, and venture finance for the healthcare, education, and real estate sectors. * **Unsecured Lending:** Personal and business loans tailored for micro-enterprises and individuals in the "missing middle" of the credit market. * **Risk Mitigation:** Employs **AI/ML** for risk analytics and customer engagement, alongside a disciplined **Re-KYC** system for existing loan portfolios. --- ### **Capital Structure & Aggressive Fundraising Trajectory** To fund its transition into a high-growth Fintech, the company has significantly expanded its capital base and borrowing headroom: | Metric | Status / Target | | :--- | :--- | | **Authorized Share Capital** | Increased to **₹45 Crore** (up from ₹11 Crore in 2023) | | **Paid-up Equity Capital** | Grown to **₹10.70 Crore** (as of Dec 2025) | | **Rights Issue Target** | Up to **₹65 Crore** (Approved for March 2026) | | **QIP Enabling Limit** | Up to **₹1,000 Crore** (Approved Sept 2025) | | **Borrowing Limit** | Enhanced to **₹300 Crore** | | **Investment/Loan Limit** | Enhanced to **₹500 Crore** (under Section 186) | **Recent Equity Actions:** * **Preferential Allotment (Dec 2025):** Issued **42,00,000 shares** at **₹50/share** (including a **₹40 premium**), raising **₹21 Crore**. * **Warrant Conversion:** Converted warrants at **₹14/share** in late 2024, adding **₹4 Crore** to paid-up capital. * **Promoter Commitment:** Promoter **Akhil Nair** recently subscribed to **2,00,000 shares** for **₹1 Crore**. --- ### **Financial Performance Summary** While the company is scaling its capital, recent audited cycles show a period of consolidation and investment-led pressure on margins: | Financial Year | Revenue (₹ Cr) | PBT (₹ Lakhs) | Net Worth (₹ Lakhs) | | :--- | :--- | :--- | :--- | | **FY 2021-22** | - | - | **610.87** | | **FY 2022-23** | **5.09** | **65.76** | **660.10** | | **FY 2023-24** | **5.01** | **28.85** | **1,205.94** | | **FY 2024-25 (Unaudited)** | - | - | **1,288.53** | *Note: The decline in PBT from ₹65.76 Lakhs to ₹28.85 Lakhs reflects the competitive environment and costs associated with the strategic pivot.* --- ### **Governance, Management & Compliance** The company is strengthening its leadership to manage its larger scale and technological complexity: * **Key Personnel:** * **Mr. Arun Madhavan Nair:** Whole-Time Director (Term: 2025–2028). Managerial remuneration has been increased to **₹1 Crore per annum** to retain top talent. * **Mrs. Chhayaba Balbhadrainh Dodiya:** Chief Financial Officer (Appointed Nov 2024). * **Regulatory Standing:** Listed on **BSE (540254)** and **Metropolitan Stock Exchange (35404)**. The company currently operates under **Corporate Governance Non-Applicability** status due to its size, though it maintains a formal performance evaluation system for Independent Directors. --- ### **Risk Factors & Operational Challenges** Investors should monitor several regulatory and operational hurdles identified in recent audits: * **Regulatory Scrutiny:** In **March 2025**, the **RBI** reviewed the company’s gold loan practices. The company is currently updating its **Gold Loan Policy** to align with the latest Master Directions and address industry-wide "irregular practices." * **Compliance Gaps:** * **Auditor Transitions:** Statutory Auditor **M/s Haribhakti & CO** resigned in August 2024. * **Independent Director Issues:** Previous audits noted a lack of registration in the **Independent Directors' Databank** and interest payments to directors that may conflict with **Section 149(6)** of the Companies Act. * **Documentation:** As of Sept 2025, secretarial auditors noted a lack of proof for certain **RBI** filings and returns. * **Legacy Liabilities:** A **₹4.38 crore** unsecured loan from the liquidated **Diamond Jubilee Coop. Bank Ltd** remains written off since 2016-17; the company does not provide for interest on this disputed amount. * **Operational Resilience:** A **November 2023 data loss incident** (hard disk corruption during office relocation) resulted in the deletion of backup data for the company's **SDD Software**. * **Market Pressures:** Intense competition from Tier-1 banks and large NBFCs exerts pressure on **pricing power** and yields. Furthermore, **RBI securitization norms** (prohibiting loans with <365 days maturity) limit the company's ability to offload short-term gold loan assets.