TruCap shares extend gains; new branch additions in focus

Shares of TruCap Finance extended their gains on Friday as the multibagger stock surged 7 per cent in the two trading sessions. The company has remained the focus of investors on the back new branch addition, since its listing on the National Stock Exchange (NSE) about a month ago.

Shares of TruCap Finance gained more than 7 per cent in the two sessions to Rs 53 on Thursday, commanding a total market capitalisation of more than Rs 600 crore. The scrip had settled at Rs 51.76 on Wednesday. The stock has gained about 400 per cent in the last four years.

Earlier this month, the company said that it has been setting up Dhanvarsha branches in a cluster-based approach. The company opened 31 branches in the first quarter of this fiscal year, including 7 new branches in Rajasthan, marking its entry in the state. This takes the total branch count to 103 branches at the end of the quarter.

The company has its presence in the States of Maharashtra, Madhya Pradesh, Gujarat, Goa, Delhi NCR, Punjab, and now Rajasthan. More than 75 per cent of its branch presence is in tier-II, tier III and tier IV and towns.

The non-banking finance company (NBFC), which focused on micro, small, and medium enterprises (MSMEs), disbursed Rs 261 crore in the June 2023 quarter, compared to Rs 237 crore disbursed in the year ago period. In the last five years, the company has disbursed 2,080 crore billion to more than 1,90,000 borrowers over the last five years.

Its assets under management stood over Rs 650 crore with more than 65,000 active borrowers. The company prioritizes co-lending and partnerships with large lenders including HDFC Bank, DCB Bank, Central Bank of India, Shivalik Small Finance Bank, and UGRO Capital.

Formerly known as Dhanvarsha Finvest, the Mumbai- headquartered TruCap Finance, is engaged primarily in the business of providing micro enterprise loans, SME Loans, other structured business, personal loans, gold loans and ancillary services related to the said business activities.

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