1,100 Per Cent Returns in 5 Years: This NBFC Raised Rs 10 Crore Through Preferential Allotment, Issued 7,65,090 Shares at Rs 131 Each to FIIs and HNIs for MSME Lending Expansion
The company's 1-year return stands at 192.1 Per cent, while its 3-year return is 537.23 Per cent, emerging as a multibagger stock.
Emerald Finance Limited, a notable entity in the financial services sector, has successfully raised Rs 10 crore through a preferential allotment of equity shares to promoters, foreign institutional investors (FIIs), and high-net-worth individuals (HNIs). This strategic move involved the issuance of 7,65,090 equity shares at Rs 131 each, including a premium of Rs 121 per share, thereby increasing the company's equity capital from Rs 33.78 crore to Rs 34.54 crore. The capital infusion is set to strengthen Emerald Finance's financial position, enabling expansion in retail and MSME lending. The funds will also bolster the company's digital Early-Wage-Access (EWA) product, which offers short-term salary advances in collaboration with employers.
Prominent investors in this allotment include Saint Capital Fund Mauritius, Mr. Rajesh Jain, and Mr. Vishnu Sultania Commenting on this development, Mr. Sanjay Aggarwal, Managing Director of Emerald Finance Limited, stated, 'The successful allotment of equity shares reinforces our financial strength and supports our expansion in retail and MSME lending. This capital infusion will also accelerate the growth of our digital EWA product, providing employees with seamless short-term salary advances in collaboration with employers.'
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Emerald Finance Limited, formerly known as Emerald Leasing Finance and Investment Company Limited, is a Chandigarh-based non-deposit-taking NBFC. The company specialises in retail and MSME lending, acting as a loan origination platform for over 40 financial institutions through its subsidiary, Eclat Net Advisors Private Limited. Since obtaining its NBFC license in 2015, Emerald Finance has expanded its offerings to include personal and business loans, as well as a digital Early-Wage-Access (EWA) product. The EWA product, launched in FY24, provides short-term salary advances in partnership with employers and has processed Rs 46 crore in salary advances as of Q3 FY25. The company serves 6.5 lakh customers across 200+ cities and has embraced digital initiatives, including new credit products and a mobile app. For FY24, Emerald Finance reported a total income of Rs 13.36 crore, EBITDA of Rs 7.06 crore, and PAT of Rs 4.14 crore on a consolidated basis. The company aims to significantly scale its EWA programme and customer base in the coming years.
As of April 2, 2025, the current stock price of Emerald Finance Limited is Rs 103.55. The stock has a 52-Week High of Rs 162.3 and a 52-Week Low of Rs 29.29. Emerald Finance Limited has a market capitalisation of Rs 350 crore. The company's 1-year return stands at 192.1 Per cent, while its 3-year return is 537.23 Per cent, emerging as a multibagger stock. The Price-Earnings (PE) Ratio is 46.41. Major public shareholders include Money Growth Investment Consultants Pvt Ltd with 1.48 Per cent, Pankaj Mehta with 1.29 Per cent, and Agr Investments Limited with 1.03 Per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.