Arka Fincap NCD opens for subscription from 07 December 2023. The company aims for a base issue size of ₹300 Crores.
About the company
Arka Fincap is an NBFC-ML registered with RBI. The company primarily engaged in providing structured term financing solutions to corporates, real estate and urban infra financing, loans to micro, small, and medium enterprises (MSME), and personal finance loans to borrowers in India. Arka operates in 17 Indian cities across West, South, and North regions with over 300 employees. As of 30 September 2023, Arka Fincap had served approximately 30,000 active customers. The total Loan Book as of 30 September 2023, FY 2023, 2022, and 2021 was INR 4,033.19 crore, INR 3,960.27 crore, INR 2,379.88 crore, and INR 1,124.33 crore, respectively.
Arka Fincap achieved a long-term debt rating of CRISIL AA-/Stable from CRISIL and a short-term rating of CRISIL A1+ from CRISIL within the first year of the inception of its business. The company average cost of borrowings as of 30 September 2023, FY 2023, 2022, and 2021 was 9.60%, 9.53%, 8.70%, and 9.27%, respectively.
Objectives of the Issue
- For onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company
- General corporate purposes.
Arka Fincap NCD Details
| Issue Open | December 7, 2023 – December 20, 2023 |
| Security Name | Arka Fincap Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 300.00 Crores |
| Issue Size (Shelf) | ₹ 500.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | “ CRISIL AA-/ Positive” by CRISIL Ratings Limited |
| Tenor | 24, 36 and 60 Months |
| Series | Series I to VI |
| Payment Frequency | Quarterly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
Arka Fincap NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Quarterly | 9.00% | 9.29% | ₹ 1,000 |
| Series 2 | 24 months | Annual | 9.30% | 9.29% | ₹ 1,000 |
| Series 3 | 36 months | Quarterly | 9.30% | 9.62% | ₹ 1,000 |
| Series 4 | 36 months | Annual | 9.65% | 9.64% | ₹ 1,000 |
| Series 5 | 60 months | Quarterly | 9.65% | 9.99% | ₹ 1,000 |
| Series 6 | 60 months | Annual | 10% | 9.99% | ₹ 1,000 |
Arka Fincap NCD Rating
The NCDs proposed to be issued under this Issue have been rated CRISIL AA-/Positive by CRISIL Ratings Limited, with such ratings considered to have a stable outlook.
Company Financials
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 4,512.21 | 4,338.09 | 2,627.00 | 1,366.14 |
| Revenue | 258.48 | 372.89 | 203.09 | 102.93 |
| Profit After Tax | 35.32 | 61.36 | 32.52 | 16.88 |
| Net Worth | 1,130.83 | 1,033.04 | 826.93 | 666.88 |
Arka Fincap NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 375,000 |
| Non-Institutional | 375,000 |
| HNI | 375,000 |
| Retail | 375,000 |
| Total NCD’s | 1,500,000 |
Company Promoters
- Kirloskar Oil Engines Limited
- Arka Financial Holdings Private Limited
Arka Fincap NCD Lead Manager
- JM Financial Limited
- Nuvama Wealth Management Limited
Arka Fincap Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: arkafincap.ncd2023@linkintime.co.in
Website: www.linkintime.co.in
Arka Fincap NCD Contact Details
ARKA FINCAP LIMITED
2504, 2505, 2506, 25th Floor, One Lodha Place,
Lodha World Towers, Senapati Bapat Marg,
Lower Parel, Mumbai- 400013, Maharashtra
Phone: +91 22 4047 1000
Email: arkasecretarialandcompliance@arkafincap.com
Website: www.arkafincap.com
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in Arka Fincap NCD is purely your personal choice. make a good study and analysis before you make the investment decision.
Happy Investing
