- **Upsurge Investment & Finance Ltd is a Mumbai-based financial services firm that hunts for “hidden gems” - small and mid-size businesses it believes are undervalued because of temporary industry downturns - and then provides them with the money and strategic advice to accelerate their growth. It has operated for more than two decades as a non-deposit-taking NBFC registered with the Reserve Bank of India, listed on the BSE since 1996, and led by a team whose senior professionals carry over 120 years of combined experience in financial structuring and advisory. That same philosophy of identifying undervalued assets and backing them with patient capital runs through everything it does, whether it is lending against collateral, trading listed shares, or advising a business from its earliest days up to a pre-IPO fundraise.** # Business segments A single financial-services engine that makes money three ways - lending to small businesses, trading and investing in listed securities, and advising SMEs on strategy and capital - all built around the same skill of spotting undervalued opportunities. ## 1. Fund-based lending and investment: the balance-sheet engine **The company puts its own capital to work by making secured loans to small enterprises and by actively buying and selling listed shares, with every asset marked to market daily.** - **Loans backed by collateral** - it provides term loans to micro, small and medium enterprises (MSMEs) and for construction finance, secured against a pledge of shares, the underlying asset being financed, cash, or bank guarantees. As of March 2025, 78.5% of its loan book was secured by tangible assets, and every single loan was classified as low credit risk with no past-due accounts. - **Credit risk caught early** - the company uses a three-stage expected credit loss model that tracks days past due, so a loan moves into a watchlist at 30 days and is considered in default at 90 days. That is how it keeps its entire portfolio in Stage 1, meaning all loans were in Stage 1 as of the reporting dates. - **Funded lightly, so the downside is contained** - the company carries very little debt, with a debt-equity ratio of just 0.07 as of March 2024, and its borrowings are limited to an overdraft secured against its own fixed deposits. That means it funds most of its lending and investing from its own equity rather than from borrowed money. ## 2. SME advisory and capital-raising: the fee-for-expertise engine **The company sells its know-how to small and mid-size businesses that need a strategic roadmap and access to capital, taking them from seed stage all the way to a pre-IPO round.** - **Strategy first, money second** - the advisory work begins with reconceptualising a client’s business model, fixing its financial structure, and bringing in board-level governance and succession-planning experience. The company concurrently helps raise money through structured funding options for SMEs. - **A menu of funding options** - it arranges standard business loans, loans against commodities, project financing, and syndicated facilities that pool multiple lenders, so a growing SME does not have to rely on a single bank relationship. - **Down to the retail level** - the firm also offers microcredit, term loans, and working-capital assistance to small traders and even low-income families, using a tech-based loan facilitator to generate leads. That extends its reach beyond the mid-size companies that form its core advisory clients. - **The full lifecycle play** - by covering everything from seed funding through to pre-IPO capital raises, the advisory practice can stay with a client for years, earning fees at each stage as the business grows from a “hidden gem” into a more established enterprise. # Group structure and partners **The company stands alone - no subsidiaries, no joint ventures, no foreign operations - and is controlled by its promoters with just over half the equity.** - The promoters hold 54.40% of the shares, with the public holding the remaining 45.60%. - **It has no subsidiary or joint venture in any period covered by its filings, and it operates entirely within India with no foreign-currency transactions.** - The only related-party transaction of note is a rent payment of ₹4.2 lakh per year to Sankalp Properties Pvt. Ltd., where a key manager is a member. - The paid-up equity capital was expanded through the conversion of 18.5 lakh convertible warrants at an exercise price of ₹54.75 per share, bringing in fresh equity rather than debt.