Starteck Finance is an NBFC that has quietly transformed into a hybrid - part lender, part steelmaker - after acquiring a bankrupt steel plant through India’s insolvency courts. Incorporated in 1985 and operating as a non-deposit-taking finance company since 1998, it runs with a lean team of just five employees and a simple playbook: use the NBFC advantage of speed and flexibility to serve borrowers that banks overlook, then redeploy capital into hard assets when the opportunity arises. That pattern - lending for yield, then buying a steel mill out of insolvency, and now monetising a land parcel through a real-estate joint venture - explains everything that follows. # Business segments Two engines that feed each other - a financing book that generates interest income, and a steel subsidiary acquired through insolvency that now dominates the balance sheet. ## 1. Financing and lending: the original yield engine **A compact loan book funded by bank borrowings, earning interest and fees from corporate and SME borrowers that sit outside the comfort zone of larger banks.** - **Interest income is the core** - the company earns by charging interest on loans carried at amortised cost, with the effective interest rate spread over the expected life of each asset, while processing fees are amortised across the loan term and late-payment charges are booked only when actually collected. - **A deliberately broad borrower base** - the loan portfolio spans retail, SME and commercial customers across urban and semi-urban India, targeting segments that remain unserved or underserved by banks and large NBFCs, which is how the company justifies its existence against bigger competitors. - **Secured and unsecured, but tilted toward unsecured** - as of FY23, out of roughly ₹220 crore in gross loans, about ₹144 crore were unsecured, with the remainder backed by tangible assets or book debts, meaning the company takes calculated credit exposure where collateral is thin. - **A bond portfolio that doubles as collateral** - the company holds nearly ₹49 crore in quoted tax-free bonds issued by public-sector entities like REC, NHAI, HUDCO and IRFC, but these are pledged to secure credit limits, so they serve as a funding tool rather than just an investment. ## 2. Bhuwalka Steel: the insolvency bet that changed the company **A 100%-owned steel subsidiary acquired for a token sum through the NCLT process, now a material but financially strained manufacturing asset.** - **Bought through the bankruptcy courts** - Starteck acquired Bhuwalka Steel Industries Limited under an NCLT-approved resolution plan effective November 2022, paying just ₹1 lakh for full ownership of a company that had been in insolvency since April 2019. - **A real factory making real products** - Bhuwalka manufactures rolled steel products including TMT bars, angles, channels, beams, squares, rounds and flats, which are the structural materials used in construction and infrastructure. - **The balance-sheet weight is heavy** - as of March 2026, Bhuwalka had a negative net worth of roughly ₹69 crore, meaning the subsidiary is a drag on consolidated financial health even as it generates revenue. - **Related-party lending ties it to the parent** - Starteck itself has extended loans of about ₹17.5 crore to Bhuwalka, making the subsidiary both an operating asset and a borrower from its own parent company. # Group structure and partners **A tightly held promoter group with deep links to Sunteck Realty, plus a land-monetisation deal that converts a legacy asset into a share of a luxury residential project.** - **Promoters control nearly three-quarters** - the promoter and promoter group held 72.96% of shares as of March 2025, with key entities including Glint Infraprojects, Eskay Infrastructure, SW Capital, and individuals led by Kamal Khetan. - **Common promoters with Sunteck Realty** - Starteck and Sunteck Realty Limited share promoters, which is how a land parcel owned by a Starteck subsidiary ended up in a joint development with a Sunteck subsidiary. - **The Nepean Sea Road land play** - a former subsidiary, Chitta Finlease, holds rights to a land parcel on Nepean Sea Road in Mumbai, and has entered a joint development agreement with Mithra Buildcon (a Sunteck Realty subsidiary) to build a high-end residential project, with Chitta keeping a 13.78% revenue share and no upfront payment required from the developer. - **Subsidiaries that came and went** - the company has shed two subsidiaries in recent years: Starteck Housing Finance was sold to promoter-linked trusts for ₹11.45 crore before it ever commenced business, and V Can Exports was struck off the register entirely in October 2024 after contributing nil revenue.