Details of the offering:
- Name of the Issuer: Annapurna Finance Pvt Ltd
- Product: Senior Unsecured Bond (regulated by SEBI)
- Yield: 11.00% p.a.
- Tenure: 12 months
- Min Investment: ~Rs. 6,30,000
- Interest repayment: Monthly
- Principal repayment: Quarterly
- Rating: ICRA “A-“
Key Highlights:
- Annapurna Finance Pvt. Ltd (AFPL) was established in 2009, and is now one of the leading NBFC-MFIs in the country
- As of March 2023, the company had a net-worth of ~INR 1,200 crore with equity investors including Oman India Joint Investment Fund, Asian Development bank, Nuveen Global Impact Fund, Belgian Investment company, among others.
- In June, 2022 it raised equity worth $15 million from Proparco.
- Healthy capital adequacy ratio of 24.66% as of Mar'23
- The company has been continuously profitable for the last 10 years despite macroeconomic shocks like Covid-19
- The company has witnessed strong growth in FY23 - balance sheet grew by ~20% to INR 8,577.85 crore, revenue growth by 36% reaching INR 1,569.57 crore and PAT grew by 91% to INR 32.72 crore.
Overview:
Annapurna Finance Pvt. Ltd (AFPL) is a leading MFI that is based in Odisha. The company mainly provides loans through the JLG mechanism to under-served women and households. These loans are used by women for entrepreneurial or consumption activities.
As on December 31, 2022, AFPL was catering to more than 24 lakh borrowers through a network of 1,160 branches spread across 383 districts in 20 states/UTs, while managing a portfolio of Rs. 7,964 crore. It operates mainly in Odisha, which contributes 21% of its portfolio.
Management:
Mr. Gobinda Chandra Pattanaik, the Managing Director of Annapurna is a pioneer in the field of microfinance with over two decades of experience; he has always been in the forefront of implementing developmental activities and building microenterprises. He holds a Bachelors in Law (L.L.B) along with a Masters in Arts. He is an advisor to many District Administrations and has played a key role in setting up various community-based institutions. He started People’s Forum (“PF”) in 1988 which is one of the largest NGOs operating in Odisha.
Key Financials:
All figures in INR crore
|
Balance Sheet |
FY 23 |
FY 22 |
|
Cash & cash equivalents |
756.79 |
951.34 |
|
Bank balances |
840.34 |
948.89 |
|
Loans Portfolio |
6,326.25 |
4,966.82 |
|
Investments |
100.49 |
5.00 |
|
Other financial assets |
398.00 |
183.27 |
|
Non-financial assets |
134.11 |
111.69 |
|
Total Assets |
8,577.85 |
7,180.61 |
|
Debt Securities |
1,530.08 |
1,856.77 |
|
Borrowings (other than debt securities) |
5,191.32 |
4,024.13 |
|
Other Financial Liabilities |
282.17 |
138.30 |
|
Non-Financial Liabilities |
20.47 |
17.29 |
|
Total Equity |
1,208.31 |
793.89 |
|
Total Liabilities & Equity |
8,577.85 |
7,180.61 |
|
P&L Statement |
FY 23 |
FY 22 |
|
Interest Income |
1,208.96 |
991.44 |
|
Total Income |
1,569.57 |
1,152.77 |
|
Finance cost |
665.31 |
563.56 |
|
Impairment on Financial instruments |
361.84 |
193.83 |
|
Profit Before Tax |
44.18 |
23.75 |
|
Tax Expense |
11.46 |
6.62 |
|
PAT |
32.72 |
17.13 |
- Group Loans: Income Generation Loans are smaller loans given to our SHG/JHG clients
- MSME Finance: Business loans to micro, small and medium enterprises to meet their working capital needs
- Housing Finance: Offering higher ticket size loans to customers with formal and informal source of income
- Samarth Loan: Loans for Persons with Disability and financially excluded sections of the society
- Safe Water and Sanitation to Households (SWASTH): Financial assistance to individuals to provide them access to safe water and sanitation facilities at household level.
- Dairy Development Loan: The loan is available for purchasing cross breed cow/buffalo, construction of cattle shed and for purchasing dairy related equipment.
- Solar Loans: Allows individuals to buy lights which are cost effective and eco-friendly
- Consumer Durable Loans: Consumer Durable Loan is a financial support given to clients who are unable to make lump sum payments for buying consumer durable products
- Home Improvement Loan: Home Improvement Loan is a short- term loan advanced for improvements in residential property
- PMSVANidhi Loan: Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi is a special micro-credit facility scheme for providing affordable loans to street vendors
The prominent lenders in Annapurna include:
- Canara Bank
- Bank of Baroda
- UCO bank
- Corporation Bank
- ICICI Bank
- Axis Bank
- RBL Bank
- Federal Bank
- Kotak Mahindra Bank
- Blue Orchard Finance
- Microvest
- Triple Jump
- Water.org