Veefin Solutions surges 10% and hits the upper circuit in early trade; here’s why

The shares of Veefin Solutions Limited witnessed a significant surge today. The stock commenced trading at Rs 276.10, up by 10% from the previous day’s closing price of Rs 251. As of writing this article, the shares of the company are trading at Rs 276.10 each on the BSE.

Veefin Solutions Limited (Veefin) stands as a global leader in the realm of Digital Supply Chain Finance. As a company listed on the BSE SME, it is pioneering a transformation in Supply Chain Finance and Digital Lending by employing innovative, agile, and composable technology. It specialises in creating white-labelled Supply Chain Finance and Digital Lending solutions for a diverse range of clients, including Banks, Financial Institutions, Fintechs, B2B marketplaces, and Corporations.

The stock’s 52-week high and low are Rs 276.10 and Rs 85.13, respectively. Possessing a market capitalisation of Rs 585 crore, the stock has showcased outstanding performance in recent periods, yielding a 99% return within a month.

Regarding the latest update, PSB Alliance, the entity set up by India’s 12 Public Sector Banks (PSBs), has appointed Veefin Solutions to deploy and administer a unified, cloud-based Supply Chain Financing (SCF) ecosystem in the country.

This is the first time in the world when so many large banks have come together to set up an SCF and SME finance ecosystem to provide SME customers with financing sourced through various fintech and B2B marketplaces. This cloud-based platform will go live within this financial year.

This initiative by PSB Alliance aligns with the Indian government’s efforts to encourage Public Sector Banks (PSBs) to develop technology solutions that streamline the credit decision-making process and accelerate loan disbursements to the MSME segment.

The company’s unified digital platform will standardize all interactions and enhance credit requests with new-age data and analytics. It will also connect the core banking systems of lenders with corporate and SME sourcing partners such as Fintechs, B2B marketplaces, SME account service providers, and e-invoicing players.

This unified platform will empower PSBs and other lenders to gain better access to SMEs, reduce the cost of loan origination, and eliminate the need for capital investment and resources to establish their tech infrastructure and connect with numerous parties. SMEs will have access to supply chain financing from PSBs, other banks, and NBFCs through this platform.

The company’s IPO opened on June 22, 2023, and closed on June 26, 2023. It was oversubscribed 2.46 times, and the final issue price was set at Rs 82 apiece on the listing date.

The shares debuted on the market on July 05 for Rs 86.05 each and have generated an impressive return of 237% over their final issue price.

Investors should keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.