📈 CMP: ₹10.96 | 🚀 Up 4.98% | 🏦 Sector: NBFC | 🎯 Fresh Capital: ₹207 Cr
🧵 At a Glance
On May 26, 2025, TruCap Finance (TRU) announced its biggest corporate makeover yet:
The Marwadi Chandarana Group (MCG) is acquiring a ~75% stake through a ₹207 Cr capital infusion and secondary share purchase, kicking off a mandatory open offer. The existing promoters? Walking away with zero stake — and maybe a few regrets.
The real question: Can this sleepy NBFC with 117 branches finally become something bigger, or is this just another small-cap pump with a press release?
🏢 About TruCap Finance Ltd
- Started Lending: 2018
- Business: NBFC with focus on:
- Gold Loans
- MSME Business Loans
- EV Financing
- Branch Network: 117 across Tier 2, 3, 4 towns
- Borrowers Served: 4.46 lakh+
- Disbursements Till Date: ₹5,550+ Cr
- Current Active Borrowers: 65,640
- Partners: 40+ banks and FIs over 5 years
In short, it’s like a mini-Muthoot + LendingKart, but with better press this week.
🧑💼 The New Promoter: MCG Group
- Full Name: Marwadi Chandarana Intermediaries Brokers Pvt. Ltd
- What they do:
- Stock broking
- Capital markets infra
- Education ventures
- Renewable energy 🌀
- Net Worth: ₹2,500 Cr
- Legacy: 30+ years in finance — basically old money + new ambition
The group already has brokerage DNA. Now they want to become a B2C credit play. This deal is their “Fintech 2.0” entry.
🧾 The Deal Terms (Quick Breakdown)
| Component | Amount/Details |
|---|---|
| Capital Infusion | ₹207 Cr (Equity + Warrants) |
| Secondary Purchase | 3.68 Cr shares from existing promoters |
| Promoter Group Exit | 100% — they’re out 🏃♂️ |
| MCG Shareholding Post-Deal | ~75% (new controlling shareholder) |
| SEBI Triggered Open Offer? | ✅ Yes — SAST Regulations activated |
💸 Why This Matters
✅ Strengthens Balance Sheet
- ₹207 Cr infusion gives TruCap ammo for higher AUM, better provisioning, and tech upgrades.
✅ Ratings Upgrade Expected
- Better credit profile = cheaper cost of funds = higher net interest margins (NIMs).
✅ Focus on Bharat
- With Tier-2/3/4 branch DNA and NBFC license, MCG can build rural lending empire — especially in gold + EV loans.
✅ Marwadi Synergy
- Broking + Lending + Data + Distribution = Fintech but with Gujarati risk management
🔮 What Next for TruCap?
- Gold loan business = sticky, secured, and scalable
- MSME + EV loans = margin expanders, if managed well
- Potential tech platform overlay from MCG’s capital markets biz
- Likely rebranding, product redesign, and CRM overhaul incoming
⚠️ But don’t expect overnight magic — NBFC transitions take time and RBI loves watching from the shadows.
💡 EduInvesting Take
Let’s call it what it is:
A ₹10 stock with ₹207 Cr fresh capital and a broking giant trying to do a LendingKart meets IIFL Finance play.
Could this be a 10x in 5 years if everything goes right?
Sure.
Could it also become a cautionary tale of “Open Offer pe mat bhago”?
Also yes.
But here’s the thing:
- The promoter handover is clean.
- The buyer has deep pockets.
- The biz model is scalable.
- And the stock is still under ₹11.
In EduInvesting terms: “Beta yeh chalu hone wala hai. Sirf dekh mat, samajh.”
🚨 Risks
- Post-acquisition execution always tricky
- Valuation spike might front-run actual transformation
- RBI norms for promoter change, capital buffers = not instant
- Loan book quality still unknown (NPA data not in PR)
📊 Forward Value? Too Early, But…
Let’s guesstimate:
- If ₹207 Cr helps push AUM from current est. ₹1,000 Cr to ₹3,000 Cr by FY28
- And NIM expands + rating improves
- PAT of ₹60 Cr by FY28 → P/E 15x = ₹900 Cr market cap
🎯 CMP m-cap: ~₹650 Cr → room to grow — if execution is top-notch.
🗓️ Published: May 27, 2025
✍️ By: Prashant Marathe
🔖 Tags: TruCap Finance, Marwadi Chandarana Group, NBFC Acquisition, Open Offer SEBI, Gold Loan NBFCs, EV Financing India, EduInvesting
