Belstar Microfinance Ltd IPO

Pan-India presence, a strong and well-diversified portfolio, and a consistent track record of growth and improvement of financial and operational metrics.

Brand recall and synergies with Muthoot Finance Group.

Customer-centric business model with deep understanding of the large Indian underbanked customer segment.

Access to diversified sources of capital and effective cost of funds and asset liability management.

Microfinance borrowers in India generally does not have access to other forms of organised lending and 99.93% of its gross loan portfolio are unsecured as of December 31, 2023. As a result, the company may experience increased levels of NPA (for which its as of December 31, 2023 is at 1.88%) and related provisions and write-offs that may adversely affect its business, financial condition and results of operations.

The company credit monitoring and risk management policies and provisions may not be adequate to control its Non-Performing Assets which could adversely affect the company's financial conditions and results of operations.

If the company is unable to manage its growth effectively, its business and reputation could be adversely affected. Furthermore, the company may not be able to sustain the growth rates the company has had since its inception.

As of December 31, 2023, 48.46% of its gross loan portfolio is derived from loans originating from Tamil Nadu, and any adverse developments in this region may have an adverse effect on its business, results of operations, financial condition and cash flows.