­Established track record of operations and extensive experience of the promoters
Incorporated in 1995, Rajasthan Global Securities Private Limited (RGSPL) is a Non-Deposit taking Systemically Important Non-Banking Finance Company (ND-SI-NBFC). RGSPL is engaged in the business of making investments, trading, special situations, various types of arbitrages for the last 29 years. It has also taken anchor allotment as a QIB in several IPOs consistently of both mainboard and SMEs. The company also generate interest income though its lending segment. RGSPL has a joint lending partnership with CSL Finance Limited where it lends to various developers in the Delhi NCR area.
The company is promoted by Mr. Lalit Dua, first generation entrepreneur who has over 3 decades of experience in the capital markets. The company is managed by a qualified and well experienced senior management team along with Mr. Dua. The extensive experience of the promoters and management in special situations, making long-term and short-term investments in capital markets and last mile lending to affordable housing real-estate developers based out of Delhi-NCR has helped in building a strong networth of Rs. 1,989.56 crore with zero net debt as on March 31, 2024 and initial minimal equity which is 100 percent owned by the promoters and total assets of Rs. 2,045.86 crore as on March 31, 2024.
Acuité believes that the company’s business profile will continue to benefit from the established presence in the capital markets, backed by strong managerial support.

Healthy capital structure and strong resource raising ability
The capital structure of the company is supported by a strong networth of Rs. 1,989.56 crore as on March 31, 2024 and zero debt. The company has established relations with 10 lenders including reputed private sector NBFCs. The company avails loan against securities to invest in short term capital market opportunities. RGSPL’s capitalisation levels remain healthy reflected by overall Capital Adequacy Ratio of 110.58 percent as on March 31, 2024 (106.86 percent as on March 31, 2023), mainly by way of Tier I capital of 110.33 percent (106.64 percent as on March 31, 2023). The CAR as on December 31, 2024 stood at 102.15 percent with Tier I capital of 102.00 percent. The company has declared significant growth in Total Assets, PAT, Networth, ROAA, etc. while maintaining a net debt zero position. The company reported a PAT of  Rs. 535.42 Cr. during 9MFY25 as compared to Rs. 688.97 Cr. for FY24.
Acuité believes that the company’s comfortable capitalization levels and strong resource raising ability will support its growth plans over the medium term.

Sound asset quality
The company has a joint lending arrangement with CSL Finance where the company jointly lends to various real estate developers in Delhi NCR area which not only has the security cover of cashflows but also title deeds, corporate guarantees, shares, and securities of Promoters. The AUM of the company stood at Rs. 488.12 crore as on March 31, 2024 as against Rs. 295.16 crore as on March 31, 2023. The average ticket size of the loans are Rs. 30 crore extended for a tenor of 6-36 months. RGSPL’s asset quality remains sound with an on-time portfolio of 100 percent and NIL Non-performing assets. The company has never recorded any NPA’s on its lending portfolio.
Acuité believes that RGSPL’s prudent lending policies and longstanding relationship with CSL Finance will support its ability to scale up its operations and maintain healthy asset quality.

­­High concentration of loan book; susceptible to asset quality moderation
The loan book of the company as on March 31, 2024 stood at 488.12 crore which comprises of secured loans extended to its group companies. Further, the top five borrower comprise of ~70 percent of the loan book and the entire real estate book of the company is concentrated with 18 borrowers. The company also faces geographical concentration risk as all the borrowers of the company are concentrated in the Delhi/NCR. Occurrence of events such as slowdown in economic activity any major natural calamity in the union territory could impact the cash flows of the borrowers thereby impacting credit profile of RGSPL's borrowers leading to adverse impact the asset quality of the company. To mitigate the risk, the loans are disbursed on the basis of the project and not the builder, and the company has first and exclusive charge over the project they have financed.
However, Acuite believes that the company’s asset quality is susceptible to the concentration of its loan book.

Susceptibility of financial performance to the capital markets
RGSPL’s primary source of income is through various transactions entered in by the company in the capital markets. The total income of the company comprises of ~95 percent of gains and income from capital markets. The company generated profit after tax of Rs. 688.97 crore for FY24 as against Rs. 229.38 crore and Rs. 264.45 crore for FY23 and FY22 respectively. The company's operating performance is directly linked to the capital markets, which are inherently volatile as they are driven by economic and political factors as well as investor sentiments. Any adverse market movement (downturn) would result in decline in the company’s earning profile. Due to vintage of the promoter, the company has remained profitable through the years as they are adequately and reasonably hedged.
However, Acuité believes that the level of activity in the capital markets will continue to be a key determinant of its revenue profile and future growth trajectory.