**BSE Scrip: 538714 | CSE Scrip: 029400** Sangam Finserv Limited (formerly **Suchitra Finance & Trading Co. Ltd.**) is a specialized Non-Banking Financial Company (**NBFC**) registered with the **Reserve Bank of India (RBI)** under Section **45-IA** of the RBI Act, 1934. Headquartered in Bhilwara, Rajasthan, the company is classified as a **"Base Layer"** NBFC under the RBI’s 2023 Scale-Based Regulation (SBR) framework. As a subsidiary of **Marigold Investrade Private Limited** (which holds a **63.08%** equity stake), the company provides credit solutions and strategic investment management for individuals, professionals, and small-to-medium enterprises (**SMEs**). --- ### Capital Structure & Strategic Recapitalization The company has recently undergone a massive overhaul of its capital base to enhance market liquidity, reward shareholders, and support a higher-growth lending trajectory. * **Bonus Issue (February 2025):** The company successfully executed a **4:1 bonus share allotment**, issuing **3,72,90,200** new equity shares (Re. **10/-** each) to shareholders of record as of **February 7, 2025**. * **Equity Expansion:** Following the bonus issue, the paid-up equity capital rose from **₹9.32 Crore** to **₹46.61 Crore**. * **Authorized Capital Increase:** In **January 2025**, the company increased its Authorized Share Capital from **₹9.50 Crore** to **₹47.50 Crore**. * **Borrowing Capacity:** To facilitate aggressive business expansion, the company has enhanced its borrowing limits to **₹200 Crore**. * **Dematerialization:** High liquidity is supported by the fact that **99.34%** of equity shares are held in electronic form. * **Listing Strategy:** While maintaining its primary listing on the **BSE Limited**, the company has approved the **delisting** of its shares from the **Calcutta Stock Exchange (CSE)** to streamline regulatory compliance. --- ### Core Business Segments & Revenue Drivers Sangam Finserv operates exclusively within the **Finance and Investment** segment, utilizing a dual-pronged approach to capital allocation. #### 1. Lending Operations The company focuses on industrial enterprise financing and fund-based solutions. Key product targets include: * **Loan Against Property (LAP)** * **Corporate Loans** * **Vehicle Finance** * **Real Estate Finance** * **SME & Retail Credit:** Leveraging digital transformation and government initiatives to reach underserved segments. #### 2. Strategic Investment Portfolio The company manages surplus funds by investing and trading in shares, securities, and capital market instruments. The primary objective is generating optimal returns while ensuring capital protection. Notably, the company does **not actively trade** its strategic equity investments, viewing them as long-term value drivers. --- ### Financial Performance & Asset Quality The company maintains a robust balance sheet characterized by high net worth and disciplined credit underwriting. | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **17.01** | **18.57** | **16.49** | | **Profit Before Tax (PBT)** | — | **10.60** | **9.20** | | **Net Profit After Tax (PAT)** | **6.60** | **7.90** | **6.44** | | **Net Worth** | **133.20** | **127.13** | **119.26** | **Asset Quality Highlights:** * **Gross NPAs:** Reported at **NIL** across a total sectoral exposure of **₹143.01 Crore** (based on most recent sectoral data). * **Credit Strategy:** In **FY 2023-24**, the company shifted fund allocation toward **known business associates** and **Group Companies** to prioritize safety and predictable returns. * **Exposure Profile:** The company maintains **NIL intra-group exposure** and has **no unhedged foreign currency exposure**. --- ### Reserves & Regulatory Capital Sangam Finserv maintains a conservative reserve profile to buffer against market volatility and meet **Ind AS 109** requirements. * **Statutory Reserve:** Established under **Section 45-IC of the RBI Act**, standing at **₹12.03 Crore** as of March 2025. * **Amalgamation Reserve:** Fixed at **₹61.27 Crore**, representing surplus from prior corporate consolidations. * **Retained Earnings:** Stood at **₹13.35 Crore** (March 2025) after the capitalization of reserves for the 2025 bonus issue. * **Dividend Policy:** The Board currently follows a policy of **ploughing back profits** into the business to fund growth rather than distributing dividends. --- ### Governance, Management & Human Capital The company is governed by a mix of Executive and Independent Directors, supported by rigorous internal audit mechanisms. * **Key Leadership:** * **Mrs. Poornima Maheshwari:** Appointed as **Whole Time Director** (Oct 2024 – Oct 2029). * **Mr. Rajesh Bhatt:** Appointed as **Non-Executive Independent Director** (Feb 2024). * *Note:* **Mr. Arjun Agal** resigned as Whole Time Director in **July 2024** due to professional exigencies. * **Talent Retention:** Launched the **Employee Stock Option Scheme-2024 (ESOP)** with a pool of **5,00,000 Equity Shares** to align employee interests with shareholder value. * **Internal Controls:** Audited by **M/s. NVS & Co.**, the company maintains systems compliant with **Ind-AS 133**. No material weaknesses were reported in recent cycles. --- ### Risk Management Framework The company operates under a formal **Risk Management Policy** to mitigate financial and operational exposures. | Risk Category | Mitigation Strategy | | :--- | :--- | | **Credit Risk** | Dealing exclusively with high-rated counterparties; focus on "known" borrower profiles. | | **Liquidity Risk** | Rolling cash flow forecasts and maintaining **committed credit facilities**. | | **Interest Rate Risk** | Monitoring impact on **Net Interest Income (NII)**; managing **₹26.76 Crore** in fixed-rate liabilities. | | **Regulatory Risk** | Continuous monitoring of **SEBI (LODR)** and **RBI** mandates. | **Regulatory Note:** In **FY 2023-24**, the company paid fines of **₹2,66,680** to **BSE Limited** regarding Regulation 17(1A) (Independent Director age limit). A waiver application is currently under review. --- ### Market Outlook & Growth Targets Sangam Finserv is positioned to capitalize on the formalization of the Indian credit market. * **Sector Growth:** The Indian NBFC sector is projected to grow at a **CAGR of 18.5%** through **2026**. * **Internal Targets:** The company is aiming for a **~17% Year-on-Year loan growth**. * **Strategic Pivot:** Transitioning into a fully **integrated financial services company** by leveraging tech-led products and increasing **Assets Under Management (AUM)** through judicious pricing and high collection efficiency.