Satin Creditcare Network has been pretty volatile over the past few days. In fact yesterday, it first hit a new 52-week low at Rs.61 and then went on to touch the 5% UC at Rs.64.80 and then slipped to Rs.61 levels at the end of the day. Today it opened over 3.5% higher at Rs.63.90, which is also its intraday high point.
The company, today morning, published a business update. While it said that it had approx. 95% client and 100% center connectivity, the company said that its liquidity as at 31st March 2020 was at Rs.1600 crore, one of the highest in the micro finance industry. It also has undrawn sanctions of Rs.900 crore.
It raised Rs.6,427 crore of which Rs.400 crore was raised since nation wide lockdown - this includes Rs.50 crore of subordinated debt (Tier II Capital) from a foreign investor.
The company also raised ECB of $15 million from Development Bank of Austria, their first investment into MFI space in India
The company assured that give its current levels of liquidity, it is comfortable in serving all its outside liabilities for next 6-7 months assuming an extreme stress testing scenario of zero collection over this unprecedented period.
The Promoter’s pledge of shares has continuously reduced from 52.88% on 31st December, 2018 to 11.79% at present.
The company said that 80% of its portfolio is in rural areas where there is no major impact of the pandemic and most of the borrowers are engaged into activities of animal husbandry and agriculture allied services. Recoveries from these borrowers (engaged in essential services) are expected to be much faster.