­Seasoned Management Team supported by reputed investors:

APAC commenced its operation in FY2018. As on March 31, 2024, Mr. Gunit Chadha, the founder promoter, held 42.46% of the stake in AFSPL. Multiples Private Equity Fund & Plenty Private Equity Fund collectively hold 32.78% in AFSPL and investors such as Norwest Capital LLC and Rajamahendra Chola Limited both own 9.67% each as on September 30, 2024. AFSPL currently has its board of directors comprising of Mr. Gunit Chadha who has occupied top positions such as CEO of Deutsche Bank (Asia Pacific region) and CEO of IDBI Bank. The other members of the board include Mr. Shankar Dey, a seasoned banking and finance professional with over four decades experience in BFSI sector. The board also has Ms. Nithya Easwaran, who has over two decades experience in financial services and is also the Managing Director of Multiples Alternate Asset Management Company Limited (Multiples). The board also have Mr. Sanjay Maliah, Mr. Sanjay Athalye, Mr. Neeraj Bhai all having more than two decades of experience in BFSI and other industries and Mr Robin Agarwal having over a decade of experience across Private Equity and Consulting.,Besides the Board members the firm also relies on the expertise of seasoned professionals such as Ms. Varsha Purandare & Mr. Arijit Chanda who are the independent members of the credit committee. Ms. Varsha has over three decades experience in banking and has occupied senior positions including ex-Chief Credit & Risk Officer, SBI group in her career. Mr. Arijit has 29 years of financial services experience, including in start-ups, in risk, credit and collections across Citi Group, Fullerton etc.


Comfortable Capitalization Profile and improved profitability metrics

APAC's gearing levels are low at 1.11 times as on March 31, 2024 (1.38 times as on March 31,2023) since the operations are largely funded by equity. The CAR on levels stood at 40.89% as on March 31, 2024. The networth stood at Rs. 948.73 Cr. as on March 31,2024 (Rs. 488.53 Cr. as on March 31,2023), while the debt stood at Rs. 1056.23 Cr. as on March 31,2024 (Rs. 674.60 Cr. as on March 31,2023). The PAT for FY23 stood at Rs. 23.97 Cr. which grew to Rs. 61.72 Cr. in FY24 and further reported a PAT of Rs. 52.28 Cr. during H1FY25. The RoAA and NIM on the level stood at 3.84% and 12.49% respectively as against 2.62% and 14.16% for FY23. Acuité believes that APAC will continue to benefit from its experienced management and continued support from its investors. Moreover capital has been infused from quality sources such as Rajamahendra Chola Limited and Norwest Capital LLC which  has  given the firm further flexibility to operate their disbursements. AFSPL focuses on business loan segment which extend credit to micro & small enterprises, self-employed and salaried in semi-urban and rural areas which are secured in nature. Moreover the asset quality is healthy and the portfolio is granular. 

­­Limited seasoning of the new portfolio and risk inherent to MSME Sector:

The portfolio grew by ~51% Y-o-Y and healthy disbursements of Rs 800.94 Cr. were done in FY2024. APAC's  AUM stands at Rs. 1,831.21 Cr. as on September 30, 2024 as compared to Rs. 1,591.59 Cr. as on March 31, 2024. The portfolio has less seasoning and the performance of the new portfolio created has to be monitored. APAC is fairly diversified with presence in 6 states with major focuses on business loan segment which extend credit to micro & small enterprises, self-employed and salaried in semi-urban and rural areas which are secured in nature. Occurrence of events such as slowdown in economic activity or shifting of activity to other geographies could impact the cash flows of the borrowers, thereby impacting credit profile of APAC. Acuité believes that the company’s ability to maintain its asset quality given the low seasoned loan book and increased presence in the newer geographies will remain a key rating monitorables.