Viji Finance Limited (**VFL**) is an Indian **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)** under Section **45 IA** of the **RBI Act, 1934**. The company is categorized as a **Non-Systemically Important Non-Deposit Accepting NBFC** and operates within the **NBFC-Base Layer (NBFC-BL)** under the RBI’s Scale-Based Regulatory framework. VFL specializes in credit delivery to underserved rural segments and "new credit customers" who lack traditional banking history. --- ### **Strategic Growth Pillars & Market Expansion** VFL is currently undergoing a transition from a localized lender to a digitally-enabled financial services provider. Its growth strategy is built on three core pillars: * **Digitalization & Technology Integration:** Leveraging digital tools to enhance operational efficiency, improve the customer experience, and compete with emerging fintech players. * **Geographic & Product Diversification:** Expanding beyond its traditional footprint into new regions and introducing a broader array of financial products to meet the evolving needs of individual and corporate borrowers. * **International Visibility:** The company is facilitating the listing of **promoter-held equity shares** on the **SDAX Exchange, Singapore**, to enhance its global profile. * **Operational Streamlining:** On **January 10, 2024**, VFL disposed of its entire investment in its wholly-owned subsidiary, **Viji Housing Finance Limited** (which had not yet commenced operations), to focus exclusively on its core finance services segment. --- ### **Capital Structure & Aggressive Fundraising** To support its expansion and meet working capital requirements, VFL has executed a series of significant capital-raising activities: | Instrument | Date | Details | | :--- | :--- | :--- | | **Rights Issue** | **July 2024** | Allotted **6,00,00,000** shares at **₹1.50** (Ratio **8:11**), raising **₹9.00 Crores**. | | **Preferential Warrants** | **April 2026** | Approved **12,75,00,000** warrants at **₹2.80**, aggregating **₹35.70 Crores**. | | **Loan Conversion** | **Dec 2025** | Authorized board to convert up to **₹50.00 Crores** of debt into equity. | | **Promoter Funding** | **Ongoing** | Shareholders approved unsecured loans from CMD up to **₹25 Crores** for FY26. | **Capital Evolution:** * **Paid-up Share Capital:** Increased from **₹8.25 Crores** to **₹14.25 Crores** following the 2024 Rights Issue. * **Authorized Capital:** Progressively raised from **₹11 Crores** (Nov 2023) to **₹30 Crores** (Dec 2025) to accommodate future equity infusions. * **Borrowing Limit:** The Board is authorized to borrow up to **₹500 Crores** or the aggregate of paid-up capital and free reserves, whichever is higher. --- ### **Financial Performance & Asset Quality** VFL has demonstrated strong top-line growth in the most recent fiscal year, though profitability remains sensitive to provisioning requirements. **Standalone Financial Highlights:** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **₹2.93 Crore** | **₹1.93 Crore** | **₹2.09 Crore** | | **Net Profit (PAT)** | **₹16.87 Lakhs** | **₹12.02 Lakhs** | **₹44.03 Lakhs** | | **Income Growth (YoY)** | **+51.97%** | **-7.76%** | -- | | **Total Portfolio** | -- | **₹23.96 Crore** | **₹19.82 Crore** | **Portfolio Composition (as of FY 2023-24):** * **Stage 1 Assets (Standard):** **₹21.26 Crore** (**88.7%** of portfolio). * **Stage 3 Assets (NPAs):** **₹2.70 Crore** (Increased from **₹2.18 Crore** in FY23). * **Provisioning Note:** For FY25, the company made a provision of **₹27.17 Lakhs** against a required **₹67.92 Lakhs** for Sub-Standard Assets, indicating a potential future impact on earnings to bridge this gap. --- ### **Governance, Compliance & Risk Management** The company is led by **Mr. Vijay Kothari** (Chairman & Managing Director) with a board of six directors. While VFL maintains standard internal controls, it has faced recent regulatory challenges. **Regulatory & Compliance Status:** * **NSE Penalties:** Fined **₹1,94,700** for non-filing of consolidated financial statements for the period ending **March 31, 2024**. * **SEBI Scrutiny:** The NSE sought clarifications regarding promoter share acquisitions that exceeded limits under **Regulation 3(2) of SEBI (SAST) Regulations**. * **RBI Adherence:** VFL follows **KYC**, **Anti-Money Laundering (PMLA)**, and **Fair Practice Code (FPC)** guidelines. However, it is currently addressing gaps in uploading KYC data to **CICs portals** and finalizing **FCGPR** filings for NRI share issuances. **Risk Matrix:** * **Credit Risk:** Exposure to borrowers with limited credit history; managed via **Expected Credit Loss (ECL)** models under **Ind AS 109**. * **Regulatory Risk:** Recent RBI hikes in risk weights for retail loans (to **125%**) and restrictions on **AIF investments** with borrower exposure may increase the cost of capital. * **Liquidity Risk:** Managed by matching asset-liability maturity profiles; heavily reliant on unsecured loans from the promoter (**₹11.51 Crore** outstanding as of FY24). * **Operational Risk:** Managed by an internal audit team led by **Ms. Neha Bhadoriya (CA)**, focusing on cyber threats and process benchmarking. --- ### **Investment Outlook** VFL presents a high-growth, high-risk profile typical of a micro-cap NBFC in transition. The company’s aggressive capital expansion and focus on digital lending provide a pathway for scale. However, investors should closely monitor the **provisioning shortfall** for sub-standard assets, the **high reliance on promoter debt**, and the resolution of **regulatory queries** from SEBI and the NSE. The successful deployment of the **₹35.70 Crore** warrant proceeds will be the primary catalyst for the company's next phase of geographic expansion.