Insha Capital Sdn Bhd is a subsidiary of Insha Holdings Berhad.
We operate as an internal portfolio manager, ensuring sound strategies in relation to the raising and deployment of Shariah-compliant capital. Every dollar of capital raised by Insha Group is carefully considered and invested in a manner to match risk, reward, tenure and most importantly, our considered values in accordance with Shariah and ESG internal decision-making criteria.
Insha Capital also focuses on appropriate financial and capital structures to support the raising of Working Capital, Equity Capital, and Debt Capital. We have our own stringent financial and strategic criteria used to quickly assess investment opportunities. This makes the process of sourcing and qualifying new opportunities more efficient. Generally, we adopt two sets of criteria:
- The criteria that are disclosed publicly to intermediaries such as investment bankers, so they know what we are looking for to source deals that fit
- The criteria developed for internal review that allow us to quickly determine if the investment should be pursued further.
We evaluate the capital requirements of the business and ensure a good understanding of the total capital needed to run the operations, stress testing assumptions on a frequent basis in a disciplined manner particularly during time of economic volatilitys.
Typical investment decision making criteria may include:
- How capital intensive is the business? What percentage of capital expenditures is growth capital vs. replacement/maintenance capital? How has that trended over the last 5 years?
- What kind of lead-time is needed (i.e. time from purchase order to delivery) when making a purchase order? How large of a deposit is customary for new purchases?
- How cyclical is the business - are there any severe seasonal changes in demand? What are the factors? How much visibility do you have in expected sales?
- What percentage of the COGS cost structure is fixed vs. variable? What is the breakdown of operating expenses?What is the normal working level of cash to run the business for a year?
- At what manufacturing capacity is the company running right now? How quickly and to what extent can it be reduced if demand falls?
- What would be your biggest concern in a downside scenario?
Insha Capital prides itself on its ability to make sound real time, quick and robust decisions.