Genesis Finance Unquoted Share Price

Genesis Finance Company Limited Unquoted Share - Company Overview

Genesis Finance Limited is a well-known Indian financial institution that specializes in providing debt finance to MSMEs and consumers in India. The 50 million MSMEs and developing middle class in India may be financed using a differentiated model based on new technologies, according to the basic concept of Genesis Finance, which makes it a significant and exceptional opportunity. One of the first 25 NBFCs to be registered with the RBI, Genesis has been in business for more than 25 years. The company offers finance for a range of needs, including personal loans, working capital loans, business expansion loans, and loans for vehicles, homes, and businesses.

Genesis Finance Company Limited Unlisted Share Details as of March 31, 2023

Genesis Finance Company Limited Incorporation Details

Genesis Finance Company Limited Board of Directors

Mr. Naresh Garg, Chairman, Managing Director

Mrs. Sangeeta Garg, Whole Time Director

Mr. Gopal Bisht, Whole Time Director

Mr. Mahesh Kumar, Independent Non-Executive Director

Mr. Aashish Ghai, Independent Non-Executive Director

Mr. Feroz Malik, Independent Non-Executive Director

Genesis Finance Company Ltd Principal Business Activities

Genesis Finance Company Ltd Particulars of Holding, Subsidiaries, & Associate Companies

The company does not have any holding, subsidiary company, joint venture or associate company.

Genesis Finance Company Limited Shareholding Pattern (As of 31-03-2023)

Industry Outlook

In the midst of Covid-19 pandemic, the NBFC sector remained flat last year with hopes for recovery. While the economic sector has shown a recovery, the outlook for FY23 still looks gloomy with the evolving uncertainties of the ensuing wave of COVID-19. The severity of infections and effect of lockdown on business on NBFC asset quality will only become apparent over time.

Organic consolidation is also underway with larger NBFCs gaining share. In three fiscals through 2021, the market share of the top 5 NBFCs has risen 600 basis points (bps) to 46%. The ability to identify niches that cater to the relatively difficult-to-address customer segments and asset classes will fuel long-term growth for the sector.

Retail loans are expected to see reasonably broad-based growth in the current and next fiscals supported by pick-up in demand and consequently underlying sales. Gold, home and unsecured loans should clock the fastest growth rates. On the other hand, wholesale credit would continue to de-grow as platforms such as alternate investment funds gain currency.

In terms of asset quality, the change in the Reserve Bank of India's (RBI) NPA recognition norm to a • daily due-date basis instead of the month-end will have implications. Typically, NBFCs ramp up collection activity between the due date and the month-end, which is why their over dues reduce by the end of the month. However, this flexibility is no longer available. And bounce rates in the 60-90 days bucket are estimated at 25-35%. Consequently, a significant proportion of loans in the 60-90 days bucket may slip into the >90 days overdue bucket and will have to be recognized as NPAs.

CRISIL Ratings expects GNPAs to increase by 25-300 bps based on asset class because of the new recognition norm. While home loans and gold loans will be the least impacted, unsecured, and micro, small and medium enterprises loans will bear the brunt.

Another monitorable is the performance of the restructured book. While there has been across-the­ segment improvement in the monthly collection efficiency ratio (MCR) of NBFCs for the quarter ended September 2021, the quantum of restructuring done under the RBI Resolution Framework 2.0 is more than last year. Since this mostly involved offering moratorium, the performance of this book after moratorium is monitorable.

FAQ's on Genesis Finance

Q: What is the face value of Genesis Finance Company Ltd shares?
Answer: The face value of Genesis Finance Company Ltd is ₹10 per equity share.

Q: What is the minimum lot size for buying Genesis Finance shares through WWIPL?
Answer: The minimum lot size for Genesis Finance shares is 100 equity shares.

Q: How can I buy Genesis Finance unlisted shares through WWIPL?
Answer: Investors can complete KYC, confirm the transaction details with WWIPL, transfer funds, and receive shares directly in their Demat account.

Q: Why should I buy Genesis Finance shares through WWIPL?
Answer: WWIPL offers transparent pricing, secure transactions, seamless Demat transfers, and dedicated support throughout the investment process.

Q: Is investing in Genesis Finance Company Ltd a good idea?
Answer: Investors often evaluate Genesis Finance based on its MSME-focused lending model, retail loan portfolio, asset quality, profitability, and long-term growth prospects in the NBFC sector.

Q: Why do investors buy Genesis Finance shares before a potential IPO?
Answer: Investors seek early exposure to a growing NBFC before a potential listing, aiming to benefit from future value creation and liquidity opportunities.

Q: What business does Genesis Finance Company Ltd operate in?
Answer: Genesis Finance is a non-banking financial company (NBFC) that provides loans to MSMEs and consumers, including business loans, working capital finance, vehicle loans, home loans, and personal loans.

Q: What makes Genesis Finance different from other unlisted NBFCs?
Answer: The company has over two decades of lending experience and focuses on technology-enabled financing for MSMEs and underserved customer segments.

Q: What are the key growth drivers for Genesis Finance Company Ltd?
Answer: Growth in MSME credit demand, financial inclusion, expansion of the loan book, digital lending, and increasing retail credit penetration are key growth drivers.

Q: What factors affect the valuation of Genesis Finance shares?
Answer: Loan book growth, asset quality (GNPA/NNPA), net interest margin (NIM), profitability, capital adequacy, and return ratios are key valuation drivers.

Q: Are Genesis Finance shares available in Demat form?
Answer: Yes. Shares purchased through WWIPL are transferred directly to the investor's Demat account.

Q: Can I sell Genesis Finance shares through WWIPL?

Answer: Yes. WWIPL facilitates both buying and selling of unlisted shares, subject to market demand and availability.

Q: What documents are required to buy Genesis Finance shares through WWIPL?
Answer: Investors generally need PAN, Aadhaar, Client Master Report (CMR), and bank account details to complete the transaction.

Q: What are the risks of investing in Genesis Finance shares?
Answer: Investors should consider credit risk, asset quality deterioration, regulatory changes, interest rate movements, and liquidity constraints associated with unlisted shares.

Q: How does WWIPL help investors track Genesis Finance investments?
Answer: WWIPL provides company updates, transaction assistance, market insights, and investment support to help investors stay informed.

Q: How long does it take for Genesis Finance shares purchased through WWIPL to be credited to a Demat account?
Answer: Shares are generally transferred to the investor's Demat account after successful completion and verification of the transaction.

Q: What should investors evaluate before investing in Genesis Finance Company Ltd?
Answer: Investors should assess the company's loan book growth, asset quality, profitability, capital adequacy, management quality, and valuation before investing.

Q: Can Genesis Finance benefit from India's growing MSME financing market?
Answer: Yes. Rising demand for MSME credit, increasing financial inclusion, and greater adoption of technology-driven lending solutions may support the company's long-term growth.