Starteck Finance Limited is a **Non-Deposit taking, Non-Systemically Important (ND-NSI)** Non-Banking Financial Company (**NBFC**) registered under **Section 45IA** of the **RBI Act, 1934**. Established in **1985**, the company has evolved into a specialized lending and investment vehicle, focusing on the financing requirements of corporate entities, **SMEs**, and **Retail** customers across **urban and semi-urban** India. --- ### **Strategic Asset Portfolio & Subsidiary Structure** The company operates through a parent-subsidiary model designed to hold strategic real estate assets and distressed debt acquisitions. | Entity Name | Ownership | Strategic Role / Key Asset | | :--- | :--- | :--- | | **Bhuwalka Steel Industries Limited (BSIL)** | **Material Unlisted Subsidiary** | Acquired via **NCLT Resolution Plan** in **Nov 2022** for **₹1,00,000**. Holds industrial land assets. | | **Chitta Finlease Private Limited (CFPL)** | **Wholly Owned Subsidiary** | Holds ownership/leasehold rights in a premium land parcel at **Nepean Sea Road**, Mumbai. | *Note: **V Can Export Private Limited** was dissolved and struck off by the ROC on **October 15, 2024**, as part of a corporate streamlining exercise.* --- ### **Capital Augmentation & Growth Roadmap** Starteck Finance is currently executing a massive capital-raising program to transition from a boutique lender to a large-scale financial services player. The company has secured enabling authorizations for a total aggregate limit of **₹1,500 Crores**: * **Non-Convertible Debentures (NCDs):** Up to **₹1,000 Crores** via private placement. * **Equity & Convertibles:** Up to **₹500 Crores** through **QIP, FPO, ADR, GDR, FCCB,** or **Preferential Allotment**. **Deployment Strategy:** * **Inorganic Expansion:** Actively exploring **business acquisitions** to scale operations. * **Intra-Group Support:** Providing loans, advances, and capital to **subsidiaries and joint ventures**. * **Operational Liquidity:** Funding the working capital required to support a rapidly growing loan book. --- ### **High-Value Real Estate Monetization Strategy** A unique differentiator for Starteck Finance is its synergy with the **Sunteck Realty** ecosystem. The company is leveraging its land holdings for capital appreciation rather than just interest income. * **Nepean Sea Road Project:** Through its subsidiary **CFPL**, the company has entered into a **Joint Development Agreement (JDA)** with **Mithra Buildcon Private Limited** (a subsidiary of **Sunteck Realty Limited**). * **Development Scope:** The partnership aims to develop a **high-end, luxurious residential project** utilizing permissible FSI under **DCPR 2034**. This allows the company to monetize non-core assets and capture significant upside from Mumbai’s luxury real estate market. --- ### **Financial Performance & Asset Quality** The company has maintained a steady growth trajectory in its core lending business, though profitability has faced marginal pressure due to shifting interest rate environments. **Standalone Financial Summary:** | Metric (INR Crs) | FY 2025 | FY 2024 | FY 2023 | | :--- | :---: | :---: | :---: | | **Total Income** | **33.27** | **28.34** | **26.16** | | **Net Profit After Tax (PAT)** | **10.04** | **10.38** | **9.84** | | **Loan Portfolio** | **261.79** | **229.20** | **218.10** | | **Investments** | **196.20** | **130.79** | **72.74** | **Liquidity & Receivables:** * **Receivables Profile:** Total receivables of **₹430.56 Crs** (as of March 2025), with **₹427.94 Crs** (over **99%**) falling within the highly liquid **0-3 months** ageing bucket. * **Promoter Support:** For **FY 2023-24** and **FY 2024-25**, the **Promoter Group** waived their rights to the **2.5% (₹0.25 per share)** dividend to ensure maximum capital retention for business expansion. --- ### **Debt Structure & Interest Rate Sensitivity** The company utilizes a mix of secured bank facilities and term loans, increasingly shifting toward **fixed-rate borrowings** to hedge against volatility. * **Barclays Bank Plc:** **₹38.47 Crs** overdraft secured by **tax-free bonds** at **8.35%**. * **Canara & IDBI Bank:** **₹30.98 Crs** term loan (reduced from **₹54.77 Crs**) secured by properties in **Bangalore, Wada, and Kanchipurna** (inherited via the BSIL acquisition). * **Tata Capital:** **₹61.73 Lakhs** loan secured by **demat shares** at **9.50%**. * **Sensitivity:** A **50 bps** increase in interest rates is estimated to impact **Profit Before Tax (PBT)** by approximately **₹61.49 Lakhs**. --- ### **Risk Management & Governance Framework** Starteck Finance employs a structured risk mitigation framework overseen by **Corporate Treasury** and an **Audit Committee**. * **Credit Risk:** Uses **Expected Credit Loss (ECL)** modeling and monitors for **Significant Increase in Credit Risk (SICR)** based on counterparty results and collateral value. * **Market Risk:** Exposed to equity price fluctuations; a **5% move in the BSE Sensex** impacts PBT by **₹22.34 Lakhs**. The company reports **zero exposure** to foreign exchange or commodity risks. * **Governance:** The Board consists of **6 Directors**, including **50% Independent Directors** and **one woman director**. **Mr. Amit Pitale** (Whole Time Director & CFO) leads the executive team. * **Internal Controls:** An **independent firm** conducts extensive internal audits to ensure compliance with evolving **RBI regulatory norms** and to mitigate **cybersecurity** threats. --- ### **Operational Footprint** While headquartered in **Mumbai**, the group maintains a strategic presence across India’s high-growth corridors: * **North:** New Delhi, Gurugram * **South:** Bengaluru, Hyderabad * **East:** Kolkata, Bhubaneshwar, Cuttack, Raipur, Rourkela, Sambalpur ### **Capital Structure** * **Authorized Share Capital:** **₹15,00,00,000** (1.5 Crore shares of **₹10** each). * **Paid-up Equity Capital:** **99,10,330** equity shares. * **Promoter Activity:** In **October 2024**, an inter-se transfer of **4,45,400 shares** was executed via **Paripurna Trust** to consolidate promoter holdings.