Advik Capital Shares Rally Over 5% On Inching Towards Becoming A Systematically Important NBFC

On Thursday, the shares of Advik Capital opened on the BSE at Rs 2.34 apiece and rallied to an intraday high of Rs 2.43 during the morning deals logging a gain of 5.65% from the previous close. With a net worth of approximately Rs. 1100 million and total assets of approximately Rs. 2000 million as of today, Advik Capital Limited is moving closer to becoming a Systematically Important NBFC. The rise in stock price is a result of the company's long-term business strategy and efforts to expand its business interest in various verticals.

Advik Capital management has already started putting its business expansion strategy into action in an effort to attain this highly sought-after status. The strategy aims to diversify into cutting-edge new ventures and broaden the company's portfolio while complementing and enhancing its current business lines with comprehensive evaluation standards. It also pools additional resources needed to improve business operations and hires seasoned professionals who are subject matter experts in risk, operations, governance, and technology.

By providing its clients with more structured solutions, Advik Capital's strategic business strategy to become recognised as a Systematic Important NBFC by 2025 would further solidify its position in the financial sector. The Reserve Bank of India only classifies an NBFC as systemically important if its assets total at least Rs 500 cr.

According to the SEBI Alternative Investment Fund Regulations, the company has recently announced that it will apply for a license to operate as an Alternative Investment Fund Category II (AIF). Advik Capital is the sponsor of the planned Alternative Investment Fund. Advik Capital has pledged to invest 10% of the fund's capital and is seeking to raise up to Rs 250 Cr.

Advik Capital Limited, a well-established non-deposit-taking Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India, is primarily involved in the provision of financial loans and related services. The company is headquartered in New Delhi.