MFI stock hits upper circuit as company receives loan facility

NEW DELHI: Shares of Satin Creditcare Network jumped as much as 5 per cent in Wednesday morning trade after the NBFC firm received a senior loan facility of $5 million through external commercial borrowing. The scrip hit the 5 per cent upper circuit limit at Rs 61.55 in early Mumbai trading on BSE. Benchmark BSE Sensex traded 154 points, or 0.32 per cent, higher at 48,408.

The stock had closed at Rs 58.65 on Tuesday.

In an announcement, the microfinance institution said it had received a senior loan facility from Oesterreichische Entwicklungsbank – OeEB, Austria, through an external commercial borrowing route. The stock has delivered 120 per cent return in less than three months, rising from Rs 28.05 on February 22, 2021 and hit a 52-week high of Rs 77 on April 7. The scrip is still 20 per down from its recent high.

Satin Creditcare Network's asset under management (AUM) stood at Rs 7,274 crore as on March 31, 2021, growing 5.3 per cent QoQ. For FY21, the MFI maintained sufficient liquidity of Rs 1,469 crore. During FY21, the company raised Rs 4,312 crore, including direct assignment transactions of Rs 743 crore.

Earlier in November 2019, Satin signed a $15 million bilateral credit facility agreement with OeEB to finance income-generating and income-increasing activities of female small-scale and subsistence entrepreneurs in India.