From Rs 1.5 to Rs 29: This multibagger microcap NBFC shares rallied over 2,100% in 40 months

Shares of UY Fincorp, a lesser-known non-banking financial company (NBFC), have been buzzing on Dalal Street with their astronomical returns compared to Covid-19 lows. The stock has surged more than 2,100 per cent in the last 40 months, delivering stellar gains to the investors.

Earlier this week, the company had announced the disinvestment of its entire equity stake in ANS Developers Private Limited (ADPL). The company owned 32,00,000 equity shares, or 14.13 per cent stake in ADPL, which will be sold to Golden Goenka Credit Private Limited (GGCPL) via share purchase agreement (SPA).

UY Fincorp has agreed to sell all its shares in ADPL to Golden Goenka Credit (GGCPL), based on a valuation certificate issued by either a chartered accountant (CA) or a SEBI-approved merchant banker, whichever is higher. The valuation is based on ADPL's financial statement as of March 31, 2023, it said in an exchange filing.

As per the latest valuations, each share of ADPL is considered to be worth Rs. 253.88 apiece and the total stake is amounted to be at Rs 81.24 crore. The company's investment turned over more than 10 times in a span of two years.

Shares of UY Fincorp hit Rs 29 mark on Friday, with a total market capitalization more than Rs 525 crore. The stock was trading around Rs 1.3 in April 2020, rising more than 2,100 since then. Even from its 52-week lows, the company has delivered a return of more than 160 per cent.

UY Fincorp intends to utilize the proceeds to invest in new opportunities and strengthen their financial position, which can lead to more financial stability. UY Fincorp aims to focus more on its core business activities, providing loans and financial services, which may lead to increased revenue and profits in its primary business.

UY Fincorp is primarily focused in providing inter corporate loans, personal loans and investments in securities and trading in securities. The company provides its shareholders with the opportunity to participate in a diverse portfolio of investments and gain access to a defined investment process and the investment experience of the management team.

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