| Fund Raise | ₹100.10 CrWarrants |
|---|---|
| Market Cap | ₹2,547.68 CrSmall Cap |
| Net Profit TTM | ₹332.19 CrOperating |
| RSI | 72.47Overbought |
| Order from | Trishashna Holdings & Investments Private Limited |
| Execution period | 18 months |
| Deal value | ₹100.1 Cr |
| Share of market cap | 3.9% |
Key highlights
- Issuance of 38,50,000 fully convertible warrants at a price of ₹260 per warrant
- Aggregate fund raise amounts to ₹100.10 crore targeting the promoter group
- Warrants are convertible into equity shares of face value ₹10 each within 18 months
- Promoter group shareholding for the allottee to increase from 34.32% to 36.53%
- Issue price of ₹260 represents a premium over the current market price of ₹230.62
What Is the Fund Raise?
The board of directors of Satin Creditcare Network Limited has sanctioned the allotment of up to 38,50,000 fully convertible warrants on a preferential basis. These instruments are priced at ₹260 per unit, which was determined in accordance with SEBI ICDR Regulations. The total capital being raised amounts to ₹100,10,00,000.
These warrants are scheduled for conversion into equity shares at the option of the holder within a maximum period of 18 months from the date of allotment. This transaction is specifically targeted at Trishashna Holdings & Investments Private Limited, a part of the company's promoter group.
Strategic Rationale
This capital infusion serves as a strong signal of promoter commitment to the company's long-term trajectory. By opting for warrants, the promoter group provides the company with immediate cash through the initial subscription amount while securing a future equity increase. The pricing of ₹260 per warrant is notably higher than the current market trading price of ₹230.62, suggesting internal confidence in the company's underlying valuation.
This move is expected to strengthen the capital adequacy ratio, providing a buffer for the microfinance institution as it pursues its asset under management growth targets in an increasingly competitive lending environment.
Business Overview
- Satin Creditcare operates as a leading microfinance institution in India, primarily serving rural and semi-urban households
- The company provides a range of financial products including income-generating loans, SME loans, and housing finance
- It maintains a diversified geographic presence across 26 states and union territories focusing on financial inclusion
- The business model relies on a Joint Liability Group framework to ensure credit discipline and high repayment rates
Financial Context
Satin Creditcare has demonstrated significant financial growth, with total revenue for the trailing twelve months reaching ₹3,163.45 crore and a net profit of ₹332.19 crore. The company's quarterly revenue growth year-on-year stands at 48.05%, significantly outperforming the sector average of 4.46%. Additionally, its quarterly net profit saw a substantial increase of 640.05% compared to the previous year.
With a current Price-to-Earnings ratio of 7.67, the stock is trading significantly below the industry average of 24.49, reflecting a valuation that remains attractive despite recent momentum in price performance across technical indicators.
| Share price | ₹230.62 |
|---|---|
| Market capitalisation | ₹2,547.68 Cr |
| Revenue (annual) | ₹3,143.03 Cr |
| Net profit (annual) | ₹332.19 Cr |
| Revenue (latest quarter) | ₹919.50 Cr+23.01% vs previous quarter |
| Net profit (latest quarter) | ₹162.02 Cr+125.32% vs previous quarter |
| P/E (TTM) | 7.67×Sector 21.97× |
| Promoter holding | 36.17%0.00% QoQ |
| FII holding | 3.52%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Satin Creditcare Network Ltd announcing the outcome of the Board Meeting held on June 04, 2026. Market figures from a third-party data provider.
