SG Finserve surges 28% in 2 days after Madhusudan Kela buys 1.7% stake

SG Finserve share price surged 20 per cent to ₹432.65 on the BSE in Tuesday’s intra-day trade after investor Madhusudan Murlidhar Kela acquired nearly 2 per cent stake in the company for ₹33.3 crore via the open market on Monday. In the past two trading days, the stock price of the non-banking finance company (NBFC) has zoomed 28 per cent.

 

On Monday, March 24, 2025, Madhusudan Murlidhar Kela purchased 951,773 shares, representing 1.7 per cent stake in SG Finserve, at ₹350.01 per share in a bulk deal on the BSE, exchange data shows. Meanwhile, Dinesh Pareekh sold 300,000 shares, representing a 0.53 per cent stake, at ₹350 per share, the data shows.

 

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At 09:38 am, SG Finserve was trading 16 per cent higher at ₹418.90, as compared to the 0.62 per cent rise in the BSE Sensex. As many as 582,000 shares have changed hands on the counter so far. On an average, 342,000 shares were traded in the past two weeks, the exchange data shows. 

 

The stock bounced back 40 per cent from its 52-week low of ₹308 touched on March 17, 2025. It had hit a 52-week high of ₹546 on September 26, 2024.

 

SG Finserve, originally known as Moongipa Securities Limited, was established in 1994. The promoters of APL Apollo group, namely Rahul Gupta and Rohan Gupta, acquired 56.25 per cent stake in SG Finserve on August 20, 2021, after which an open offer was made which concluded on July 22, 2022. The entity held a Type I NBFC license until September 25, 2024, which was later converted into Type II NBFC license on October 3, 2024.

 

Since inception till December 31, 2024, SG Finserve has cumulatively disbursed ₹36,037 crore. The company's asset under management (AUM) stood at ₹1,568 crore as on December 31, 2024. The delinquencies however remain nil since inception. CRISIL Ratings expects managerial, operation and financial support from the group to SG Finserve to continue over the medium-term.

 

SG Finserve is expected to continue to have strong operational synergies with APL Apollo Tubes Limited (AATL) and its subsidiaries. SG Finserve has also integrated its systems with AATL to get timely data on the sales done to the dealers and the overall outstanding, also a stop-supply arrangement is maintained, wherein the supply to the dealer will stop in case there is overdue. Further, the promoters will continue to hold a majority stake in SG Finserve over the long-term, CRISIL Ratings said in rationale.

 

The ratings agency further expects timely capital infusion from promoters to continue to support growth and in the event of distress. While the company has nil external debt as on date, it plans to avail external borrowings to support its growth plan. On a steady state basis, the gearing metrics for the company are expected to remain under 3 times.