Sakthi Finance NCD April 2023 opens for subscription from 17 April 2023. the company aims for a base issue size of ₹100 Crores.
Sakthi Finance Limited
Incorporated in 1955, Sakthi Finance is an investment and credit company with a primary focus on financing pre-owned commercial vehicles. It also provides finance for purchasing infrastructure construction equipment, multi-utility vehicles, cars, jeeps, and other machinery. The finances provided are secured by a lien on the assets financed.
The company’s target customers predominantly comprise small/medium road transport operators and primarily hail from rural / semi-urban areas. It has identified this opportunity and positioned itself between the organized banking sector and local money lenders by offering finance at a competitive rate with flexible and speedy lending services to its customers.
Sakthi Finance operates primarily in the southern region of the country mainly in the states of Tamil Nadu and Kerala through its branch network and customer service points. The company has a network of 51 branches, located in Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and the Union Territory of Puducherry. In addition to finance business, it generates power from windmills and sells it to the Tamil Nadu electricity board and Gujarat Urja Vikas Nigam Limited. At present, the company has 17 windmills with an aggregate capacity of 5,150 kW located in the states of Tamil Nadu and Gujarat.
Objectives of the Issue
- Onward lending, financing, and repayment/prepayment of principal and interest of existing borrowings.
- Meet general corporate purposes.
Sakthi Finance NCD April 2023 Details
| Issue Open | Apr 17, 2023 – Apr 28, 2023 |
| Security Name | Sakthi Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 100 Crores |
| Issue Size (Shelf) | ₹ 200 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 for each NCD |
| Minimum Lot Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | ICRA BBB (Stable) |
| Tenor | 24, 36, 48, 60, and 85 months |
| Series | Series I to IX |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustees | CATALYST TRUSTEESHIP LIMITED |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Monthly | 9.00% | 9.00% | ₹ 1,000 |
| Series 2 | 24 months | Cumulative | NA | 9.74% | ₹ 1,194.83 |
| Series 3 | 36 months | Monthly | 9.25% | 9.25% | ₹ 1,000 |
| Series 4 | 36 months | Cumulative | NA | 10.52% | ₹ 1,315.66 |
| Series 5 | 48 months | Monthly | 9.50% | 9.50% | ₹ 1,000 |
| Series 6 | 48 months | Cumulative | NA | 11.40% | ₹ 1,455.80 |
| Series 7 | 60 months | Monthly | 10.25% | 10.25% | ₹ 1,000 |
| Series 8 | 60 months | Cumulative | NA | 13.17% | ₹ 1,658.72 |
| Series 9 | 85 months | Cumulative | NA | 14.30% | ₹ 2,013.13 |
NCD Rating
The NCD worth Rs. 100 Cr has been rated as BBB with a stable outlook by ICRA Credit Rating Agency. An instrument with such a rating is expected to have a moderate degree of safety regarding the timely servicing of debt financial obligations.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| 31-Mar-20 | 1,220.01 | 170.23 | 11.18 | 158.29 |
| 31-Mar-21 | 1,237.75 | 171.34 | 9.26 | 164.89 |
| 31-Mar-22 | 1,269.43 | 181.35 | 9.52 | 170.95 |
| 30-Sep-22 | 1,293.99 | 93.85 | 5.88 | 173.70 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 50,000 |
| Non-Institutional | 150,000 |
| HNI | 400,000 |
| Retail | 400,000 |
| Total NCD’s | 1,000,000 |
Company Promoters
- Dr. M. Manickam
- Mr. M. Balasubramaniam
NCD Lead Manager
BONANZA PORTFOLIO LIMITED
Bonanza House, Plot No. M-2 Cama Industrial Estate,
Walbhat Road, Behind the Hub Goregaon (East), Mumbai – 400 063
Phone: + 91 22 62735500/ 68363700
Email: swati.agrawal@bonanzaonline.com
Website: www.bonanzaonline.com
Sakthi Finance NCD Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: sakthifinance.ncd2023@linkintime.co.in
Website: www.linkintime.co.in
Company contact details
SAKTHI FINANCE LIMITED
62, Dr. Nanjappa Road, Post Box No. 3745,
Coimbatore – 641 018, Tamil Nadu
Phone: +91 (422) 2231471-474/4236200
Email: csubramaniam@sakthifinance.com
Website: www.sakthifinance.com
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Sakthi Finance NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
