I consider this somewhat positive, because I don’t find their approach particularly aggressive. Q2 is still at ₹28 crore, and at this pace, I don’t think PAT will exceed ₹125 crore which falls short of their guidance. Hope the new leadership adopts a more aggressive strategy, considering the small base of loan book.
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Both have been selling in open market from last few qtrs. So, these exits were probably in making from quite some time…
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Company: SG Finserve Limited
Sahil Sikka (Key Managerial Personnel) SOLD 4213.0 shares, value Rs. 16.298 lakhs (Rs. 386.86 / share) through Market Sale.
Another vantage view could be that change in management is for good. The successors are named, have a good industry experience and would be given a proper handover. May be the new management brings in the promised growth current management could not? On share selling, may be their is a personal need?
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Sorabh Dhawan the CEO has joined another competitor Veefin Solutions.
@aadhar.aggarwal - I see you mentioned Veefin in your earlier comments. Curious what’s your take on this?
The credit rating mentions about the irrevocable corporate guarantee provided by S Gupta Holding Private Limited to SG Finserve
Although there is no mention on the use of those gurrantees
If someone has a more clear understanding on this pls share
This can be one of the reasons for there Zero NPA mentioned if the gurrantees are used for that purpose.
@Mayank_Jham The corporate guarantee (CG) would be provided by S Gupta to the lenders of SG Finserve, to secure their (the banks) exposure to SG Finserve.
This would not have any impact on the NPA levels in SG Finserve, as that is solely governed by the quality of loans SG Fin. itself is making.
The CG would come into play only in a case where SG Fin. is not in a position to pay back its own lenders, at which time the lenders will invoke the guarantee and ask SGupta Holding to pay the amount as a guarantor.
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Corporate Guarantees can be revoked only upon default by SG Fin serve and have nothing to do with NPA.
In fact, SG Finserv did have a bad loan of approx 5 cr and it never appeared in NPA as same was fully provided as a loss vy company in same quarter.
Veefin solution seems a tech company which provides solutions for NBFC & banks. So it won’t be a competitor.
Wouldn’t the business model be especially susceptible especially during times of slowdown/recession?
Just when the channel partners need most support, the stop supply agreements would cut their lifelines.