Nisus Finance update on Business and outlook on current situation

Nisus Finance Services Co Limited ("Nisus Finance" or "the Company") acknowledges that the current geopolitical developments in certain parts of the Gulf region have created heightened global attention. The Company continues to closely monitor the evolving situation.

At present, the Company's investments through its DIFC-based fund remain unaffected, and there is no impact or correlation to the Company's balance sheet. The Company's team in the UAE remains closely engaged with market developments, and all ongoing business activities continue without disruption.

Outlook on the UAE Real Estate Market

While the situation continues to evolve, the Company believes that the fundamental growth drivers of the UAE real estate market remain intact. Nisus Finance have acquired pre-leased residential assets at attractive valuations compared to prevailing market levels.

Accordingly:

- The Net Asset Value (NAV) of the assets and the management fee income remain unaffected.

- The Company continues to evaluate new investment opportunities that may generate additional alpha in the current market environment.

- The investment portfolio is fully insured against force majeure events.

In the near term, certain speculative capital flows may experience delays in investment decisions due to heightened global uncertainty. However, over the medium to long term, the Company maintains a positive outlook on the UAE economy, supported by strong structural fundamentals, policy stability, sustained capital inflows, and the region's growing position as a global financial and investment hub.

Market Volatility and Business Fundamentals

The Company recognises that periods of geopolitical uncertainty can influence market sentiment and short-term volatility. However, such developments do not impact the underlying fundamentals of the Company's business.

The Company would like to reiterate that:

- The Company's capital position remains strong
- The investment pipeline remains intact
- The Company continues to maintain a disciplined risk management framework
- The Company continues to accelerate its India business operations while continuing to diversify its investment portfolio across geographies.

Further, The Company continues to closely monitor the evolving situation and will keep the stock exchange informed of any material developments.

Update on Share Pledge Reduction

Separately, the Company would like to update stakeholders regarding the repayment of debt and the consequent reduction in promoter share pledge.

In August, the Company had raised INR 110 crore of debt from Tata Capital and DSP to support the acquisition of its NCCCL stake, against which promoter shares were pledged as security.

As part of the Company's ongoing deleveraging initiatives:

- On 26 February, the Company repaid INR 10 crore, significantly ahead of the originally scheduled repayment timeline.

- Following this repayment, the total outstanding principal to Tata Capital and DSP stands at INR 38 crore.

Within seven months of availing the facility, the Company has repaid more than two-thirds of the original borrowing, demonstrating strong internal accrual generation and the Company's ability to efficiently access capital markets.

Consequently, the total promoter share pledge is proposed to be reduced to approximately 44,97,928 shares, representing around 18.84% of the Company's total outstanding shares.

Shares of Nisus Finance Services Company Limited was last trading in BSE at Rs. 206.20 as compared to the previous close of Rs. 208.35. The total number of shares traded during the day was 176000 in over 123 trades.

The stock hit an intraday high of Rs. 211.75 and intraday low of 203.50. The net turnover during the day was Rs. 36425480.00.

Source : Equity Bulls

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NisusFinanceServicesCo INE0DQN01013 BusinessUpdate