Capri Global Capital Limited IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is Acuite Ratings.

About

The company is a retail-focused, systemically important, non-deposit-taking non-banking financial company (NBFC) operating in India. It provides a range of secured lending products across four primary segments: MSME loans, housing loans, gold loans, and construction finance. Its lending activities are largely focused on collateral-backed financing to mitigate credit risk. Under its MSME segment, the company has introduced products such as micro loans against property (Micro LAP) and indirect lending while gradually phasing down certain legacy segments. The housing finance business is conducted through its wholly owned subsidiary, Capri Global Housing Finance Limited, which commenced operations in 2016 following registration with the National Housing Bank. In addition to lending, the company holds a corporate agent composite license to distribute life, general, and health insurance products. It also operates as a corporate selling agent for third-party car loans through its subsidiary. The company has recently expanded into capital market services through newly incorporated subsidiaries, with applications filed for stockbroking and merchant banking licenses. Its customer base primarily includes self-employed individuals and underserved borrowers with limited access to formal credit channels. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: For onward lending, financing, and repayment of interest and principal of existing borrowings of the company — at least 75 % General corporate purposes — maximum 25 %;

Pros and Cons

Pros

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The company claims to have established itself as a diversified NBFC with over a decade of operating experience in the Indian financial services sector. Its consolidated assets under management (AUM) increased from Rs 10,320.48 crore in FY23 to Rs 15,654.04 crore in FY24 and Rs 22,860.20 crore in FY25, reflecting significant growth. The company also claims to have expanded its branch network, employee base, and customer base over this period, indicating scalability of operations and growing market presence.

The company claims to operate a predominantly secured lending model, with 99.88% of its consolidated AUM as of FY25 backed by collateral. Its portfolio is diversified across MSME loans, housing loans, gold loans, and construction finance, primarily catering to underserved and underbanked segments. The company claims that its focus on small-ticket, granular lending, combined with collateral-backed structures, helps in managing credit risk while maintaining portfolio diversification.

The company claims to have expanded its branch network significantly across India, increasing from 736 branches in FY23 to 1,111 branches in FY25 and 1,331 branches as of December 31, 2025. This expansion spans multiple loan segments, including gold loans, MSME loans, housing finance, and micro LAP. The company claims that its hybrid sourcing model and in-house collections framework support scalability, operational control, and improved customer reach across regions.

The company claims to have developed an integrated, in-house technology platform covering the entire lending lifecycle, including onboarding, underwriting, disbursement, and collections. Its proprietary systems, mobile applications, and analytics tools are used to enhance operational efficiency, reduce turnaround time, and support data-driven decision-making. The company also claims that its digital infrastructure enables customer engagement, process automation, and compliance with data security requirements.

The company claims to follow structured underwriting practices supported by internal scorecards, business rule engines, and risk-based pricing models. It adopts customised credit assessment approaches, particularly for borrowers lacking formal income documentation. The company claims that its internal credit evaluation systems, along with legal and technical due diligence, support asset quality management and informed lending decisions.

The company claims to maintain a relatively strong balance sheet supported by its liability management practices. As of December 31, 2025, its capital adequacy ratio stood at 30.32% (standalone), compared to the regulatory requirement of 15.00%, while its housing finance subsidiary reported 24.80%. The company also claims to maintain liquidity through cash balances and undrawn credit lines, with total available liquidity of Rs 4,274.40 crore and undrawn credit lines of Rs 846.30 crore, supporting its short-term obligations and growth requirements.

The company claims to be supported by an experienced Board and senior management team with backgrounds in banking, finance, and related sectors. Its Board includes a majority of independent directors, which is intended to provide oversight and governance. The company claims that this governance framework supports strategic decision-making, regulatory compliance, and operational supervision.

Capri Global Capital Limited

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