Vaibhav Vyapaar Ltd

The company is an RBI-registered NBFC that gives small, short-tenure personal loans through its LoanFront app, with an average loan of INR 6,250 or less. Capfront Technologies, founded by Itha Venkata Raghava Gowrinath, bought it in 2019, and AUM stood at INR 81.2 cr in July 2026. Lending at this ticket size is costly relative to the amount lent, as each loan carries its own acquisition, KYC and collection cost, and CRIF data shows defaults run higher on loans below INR 10,000. FY26 GNPA of 4.7% is the highest among listed peers, even though VVL writes off bad loans quickly, and credit cost took 79% of pre-provision profit. Fees make up 70% of revenue, and RBI’s 2025 rules now regulate the fastest-growing of them, foreclosure and penal charges, which can limit how much VVL earns from its main income source. Since FY24, VVL has paid INR 15.9 cr in management fees to Capfront, its promoter company, which is more than twice the profit VVL itself earned over the same period. Key assets such as the LoanFront domains are also still held by Capfront. The IPO is priced at 77.2x FY26 P/E, against 23.4x for Kissht and 27.7x for Moneyview. Its price to book of 1.7x is lower than both, but so are its returns, with an RoE of 7.0% against 24% for Kissht and 18% for Moneyview. We would skip the issue.