Housing Loan
Investment Opportunity: Listed Housing Finance Company focused on Low Income Group



Company Overview: 
Registered with NHB, the company provides long term housing loans especially to economically weaker section or low-income group. The company focuses on the rural areas especially offering affordable loans to migrant workers who move to big cities for work & have family in villages and need funds to construct or renovate their houses in hometown. The Company has 7 branches, 15 digital PoPs and staff of 83 employees. Headquartered in Mumbai, the company has expanded their presence to Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, and Tamil Nadu
 
Products & Services:
 
The company offers different types of housing and construction loans depending upon the need of the customers. These include:
 
  • Home Purchase Loan - Purchase of New unit from developer or Purchase of resale (existing) unit
  • Construction Loan - Construction of housing unit on own land                  
  • Improvement / Extension Loan - Upgradation/ modification of existing housing unit      
  • Balance Transfer Loan - Takeover of housing loan from an approved financier
                                       
Proposal: The company is seeking to raise US$ 2 Mn through equity to gain from the high growth potential the sector has to offer. The company projects expansion by covering more consumers geographically along with diversifying lending methods.
 
Investment Highlights:
  • The Company has a visionary & stable management with a mission to drive growth
  • AUM of Rs.100+ crores with more than 1200 live accounts. Average loan size of Rs. 8-9 lakhs, classified under PSL norms
  • The company has strong financials, performing better than the industry, with a CRAR of 86.35%,
  • Adopting technology to reduce transaction duration and incorporate cost-effective methods.
  • The market cap of the company is Rs 150+ crores