05-Dec-2023
2 mins read
Arka Fincap Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on December 7, 2023, and closes on December 20, 2023. It will have a base issue size of Rs 300 crore.
About Arka Fincap Limited
Established in 2018, Arka Fincap is a non-banking financial company (NBFC) specialising in providing diverse financing solutions to a broad spectrum of businesses.
Diverse Portfolio of Services: Arka Fincap’s operations are structured across four key segments:
- Corporate Lending: Catering to corporate entities with tailored financing solutions.
- Real Estate and Urban Infrastructure Financing: Supporting projects in the real estate and urban development sectors.
- MSME Lending: Providing financial assistance to Micro, Small, and Medium Enterprises.
- Personal Lending: Offering individualised financial products to meet personal needs.
Geographical Reach and Workforce: The company boasts a significant presence, operating across 17 cities in India, spanning the West, South, and North regions. Arka’s operational success is supported by a dedicated workforce exceeding 300 employees.
Association with Kirloskar Oil Engines Limited: Arka Fincap functions as a subsidiary of Kirloskar Oil Engines Limited (KOEL), benefiting from synergies and expertise within the KOEL network.
Credit Ratings: Crisil, a leading credit rating agency, has bestowed Arka Fincap with impressive ratings. The company holds an AA(-) rating for its long-term borrowings, signifying a high degree of creditworthiness, and an A1(+) rating for short-term borrowings, indicating strong repayment capabilities.
Financial Performance of Arka Fincap Limited
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 |
| Assets | 4,512.21 | 4,338.09 | 2,627.00 |
| Revenue | 258.48 | 372.89 | 203.09 |
| Profit After Tax | 35.32 | 61.36 | 32.52 |
| Net Worth | 1,130.83 | 1,033.04 | 826.93 |
Arka Fincap Limited 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) | Rs 300.00 Crores |
| Issue Size (Shelf) | Rs 500.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 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 |
NCD Allocation Ratio of Arka Fincap Limited NCD
| Category | NCD’s Allocated |
| Institutional | 25% |
| Non-Institutional | 25% |
| Retail | 25% |
| HNI | 25% |
Arka Fincap Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 |
| Frequency of Interest Payment | Quarterly | Annual | Quarterly | Annual | Quarterly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 9.00% | 9.30% | 9.30% | 9.65% | 9.65% | 10.00% |
| Effective Yield (% per Annum) | 9.29% | 9.29% | 9.62% | 9.64% | 9.99% | 9.99% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
NCD Rating of Arka Fincap Limited NCD
The NCDs proposed to be issued under this issue have been rated “CRISIL AA-/ Positive” by CRISIL Ratings Limited.
The Objective of the Arka Fincap Limited NCD
The company intends to utilize the raised funds from the Issue, deducting the Issue-related expenses, for the following purposes:
- Facilitating onward lending, financing, and repayment or prepayment of principal and interest on current borrowings.
- Allocations towards general corporate endeavours.Top of Form
Arka Fincap Limited NCD Promoter(s)
Kirloskar Oil Engines Limited and Arka Financial Holdings Private Limited are the promoters of the company.
Arka Fincap Limited NCD Lead Manager(s)
The lead manager of the NCD is JM Financial Limited and Nuvama Wealth Management Limited.
How to Apply for Arka Fincap Limited NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the Arka Fincap Limited NCD with Bigul: https://bonanzaonline.com/.
How to Check the Allotment Status of Arka Fincap Limited NCD
The registrar for Arka Fincap Limited NCD is Link Intime India Private Limited. To check your allotment status, please click on this link: https://linkintime.co.in/
FAQs
- What is Arka Fincap Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by Arka Fincap Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The funds raised from the issue, after deducting related expenses, will be used for lending, repaying existing borrowings, and general corporate purposes.
- What is the issue size and price of the NCD?
The base issue size is Rs 300 crore, with a green shoe option potentially taking the total to Rs 500 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on December 7, 2023, and closes on December 20, 2023.
- How has the NCD been rated?
The NCD has received a “CRISIL AA-/ Positive” by CRISIL Ratings Limited.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) in a dematerialised format.
- Who are the lead managers for this NCD issue?
The NCD is being led by JM Financial Limited and Nuvama Wealth Management Limited.
- How can I apply for the Arka Fincap Limited NCD?
Once the NCD opens for subscription, you can apply through this link: Arka Fincap Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is Link Intime India Private Limited. You can check your allotment status by visiting this link.
- How many series of NCDs are available, and what are their respective tenures?
There are 6 series of NCDs available with varying tenures of 24, 36 and 60 months.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Catalyst Trusteeship Limited.
- What are the payout options for these NCDs?
Investors have the flexibility to choose between quarterly and annual interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, Arka Fincap will allocate the debentures to applicants on a proportional basis.