During Tuesday’s trading session, the shares of a global leader in Digital Supply Chain Finance surged 5 percent to Rs. 716.65 on BSE, after the company acquired 3 companies at a total valuation of around Rs. 400 crores in the last three months.
With a market capitalisation of Rs. 1,605 crores, at 10:48 a.m., the shares of Veefin Solutions Limited were trading in the green at Rs. 714.95, up by nearly 4.8 percent, as against its previous closing price of Rs. 682.55.
Is Veefin Solutions a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What’s the News:
According to the latest regulatory filings with the BSE, the Veefin Group of Companies announced acquisitions of 3 companies in the last three months, with a total valuation of nearly Rs. 400 crores. This series of acquisitions is aimed at transforming into a global Working Capital Finance Platform.
The Veefin Group’s third and latest acquisition involved EpikIndifi, an end-to-end digital lending platform, through a cash and equity swap deal valued at around Rs. 125 crores.
The expected total outlay for the initial tranche of all three acquisitions is around Rs. 215 crores, comprising both cash and equity swaps.
In FY25, Veefin Group has been undertaking a significant corporate expansion to transform into an end-to-end Working Capital Finance Platform.
With EpikIndifi’s acquisition, the Veefin Group estimates to grow clientele of banking, financial institutions and corporate clients base, from 55 in FY24 to over 500 by the end of FY25.
The acquisition of EpikIndifi will enable Veefin to add new revenue streams through digital retail lending, including personal loans, green loans, BNPL schemes, credit cards, mortgage loans and SME loans, in addition to its existing expertise in Supply Chain Finance solutions.
Earlier in June, Veefin Group acquired Regime Tax Solutions, known for its TaxGenie and PayInvoice products. Then, in August, the company announced the acquisition of the Indian arm of global technology firm Nityo Infotech.
These three acquisitions are expected to help the Veefin Group of Companies achieve its goal of transforming into an end-to-end Working Capital Finance Platform for financial institutions and corporates worldwide. Additionally, Veefin Group has achieved an annual disbursement worth $25 billion on its platform.
About target entities:
1st – Regime Tax Solutions (RegimeTS) is a leading tax compliance and financial technology company based in India.
RegimeTS offers solutions to streamline and automate tax compliance and financial processes by leveraging Artificial Intelligence (AI) and Machine Learning (ML) technologies to ensure accurate and efficient outcomes. Flagship products include TaxGenie and PayInvoice.
2nd – Nityo Infotech is a leading provider of AI and ML solutions in the financial services sector with a presence in over 44 countries and more than 3,000 clients served globally.
Nityo Infotech operates across over 15 verticals, including banking, insurance, telecom, computing software, automotive, consumer electronics, energy, healthcare, media & entertainment, retail, and manufacturing.
3rd – Founded in 2017, Epikindifi Software & Solutions Private Limited (Epikindifi) offers banks and financial institutions a suite of fully integrated, intelligent analytics-driven solutions across identity, decisions, lending and collection retail products.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 77.6 percent from Rs. 14.08 crore in FY23 to Rs. 25 crore in FY24.
Similarly, its net profit increased during the same period from Rs. 4.3 crores to Rs. 7.4 crores, indicating a rise of nearly 72 percent.
Stock Performance
Shares of Veefin Solutions have delivered multibagger returns of nearly 208 percent year-to-date, as well as around 161.7 percent returns in the last six months.
The stock has delivered multibagger returns of around 150 percent over the last three months, spanning from Rs. 285.8 in June 2024 to the current stock price level of Rs. 714.95.
This indicates that if an investor had invested Rs. 1 lakh in the stock three months back, would now be worth nearly Rs. 2.5 lakh.
About the Company:
Incorporated in 2020, Veefin Solutions Limited is a global leader in Digital Supply Chain Finance. Veefin Group offers solutions across end-to-end digital Supply Chain Finance, Digital identity verification and automated financial statement analysis, debt securitisation, cash management, trade finance, automated Accounts Receivable (AR) & Accounts Payable (AP) and software consulting and services.
Written by Shivani Singh
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