Satin Creditcare Network jumps 5% as board approves Rs 120 crore rights issue

Shares of Satin Creditcare Network jumped 5 per cent in Tuesday's trade after the microfinance lender said its board has approved raising up to Rs 120 crore through rights issue of shares.

The MFI, which reported a 77 per cent fall in its March quarter profit at Rs 13 crore due to higher Covid-19 related provisioning, said the company board has constituted ‘rights issue committee’ to decide detailed terms and conditions of the issue, including but not limited to deciding the payment modalities, issue price, rights entitlement ratio and record date, among others.

Following the development, the stock rose 5 per cent to hit a high of Rs 97.95 on BSE.


"The board of directors of the company, at its meeting held today (Monday), June 22, 2020, has considered and approved the fundraising by way of the rights issue of equity shares of Rs 10 each of the company, to eligible equity shareholders of the company...of an issue size of up to Rs 120 crore," SCNL said in a regulatory filing.

Around 25-30 per cent of the MFI's borrowers are estimated to have availed the RBI moratorium. Gross non-performing assets at an asset under management level stood at 2.9 per cent as of March 31, while net non-performing assets (NPA) were at 0.6 per cent.

The MFI's capital-to-risk weighted assets ratio stood at 30.49 per cent.