Kirloskar Oil Engines Limited’s shares were up by 7.10 per cent after its subsidiary Arka Fincap Limited received a corporate agency licence (composite) from the Insurance Regulatory and Development Authority of India (IRDAI), enabling the non-banking financial company (NBFC) to enter the insurance distribution market.

Vimal Bhandari, Executive Vice Chairman and CEO of Arka Fincap, said, “We are excited about this significant milestone in our journey that embodies our commitment to innovation, growth, and staying ahead of the curve in a rapidly evolving financial landscape. With insurance being added to our product portfolio, it will help us to diversify our offerings, driving sustainable growth for our customers and creating long-term value for all our stakeholders.”

The company reported that Arka Fincap has an AUM of ₹5,200 crore as of March 2024 and operates in 31 branches across India. The company focuses on secured and unsecured financing for MSMEs, SMEs, developers, and corporates. Crisil has assigned the company a rating of AA (-) with a positive outlook for long-term borrowings and A1 (+) for short-term borrowings.

The shares were up by 7.10 per cent to ₹1,292 at 11 am on the BSE.