 "Capri Global zooms 29% in 2 days; to consider bonus, stock split on Jan 27")
Shares of Capri Global Capital (CGCL) jumped 9 per cent on BSE to hit a new high of Rs 1,048.40 in Wednesday’s intra-day trade after the company announced plans for a bonus and stock split.
In the past two trading days, the stock of the non banking finance company has zoomed 29 per cent. In comparison, the S&P BSE Sensex was down 1.9 per cent at 71,728 at 12:57 PM.
The board of CGCL is scheduled to meet on January 27, 2024 to consider issuance of bonus shares. The board will also consider a sub-division of equity shares.
Generally, stock spilts are done to encourage wider participation of small investors and enhance liquidity of shares.
Earlier on January 5, the company said in the same meeting the board would consider issuance of Non Convertible Debentures through Public issue/private placement.
It will also announce the financial results for quarter ended December 2023 (Q3FY24).
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Meanwhile, on Tuesday, CGCL announced that the company has received a composite corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI) to distribute life, general, and health insurance products.
The NBFC is planning to leverage technology to revolutionise the way insurance products and services are delivered to customers.
It is planning to use data analytics, artificial intelligence and blockchain to deliver insurance solutions, which will enable Capri Global Capital to automate claims processing and customer support services, reducing cost of operations and improving customer satisfaction.
In H1FY24 CGCL disbursed total loans amounting to Rs 6,200 crore and added 107,000 live clients. Further, the company, on behalf of its partner banks, has originated car loans of Rs 4,400 crore i.e. 39,000 new clients.
The rapidly increasing client relationships offer CGCL a captive base to improve insurance penetration and help CGCL strengthen its fee income and deliver better returns to its stakeholders.
The company expects to generate a net fee income of Rs 20 crore from insurance cross-sell in FY25.