06-Feb-2024
2 mins read
Sakthi Finance Limited NCD 2024 issue will open on Thursday February 8, 2024 and will close on Wednesday, February 21, 2024. It is a Secured, Redeemable, Non-Convertible Debentures. The overall issue size is of Rs 200 crores. The base issue size is of Rs 100.00 crores and oversubscribed size is of Rs 100.00 crores. The NCD issue price is Rs 1000 per NCD and face value is Rs 1000 each NCD. The minimum lot size is 10 NCD. The listing is at BSE and the tenor is of 26, 36, 60 and 85 months. The lead manager of Sakthi Finance Limited NCD is Bonanza Portfolio Limited. The registrar for this NCD is Link Intime India Private Limited.
About Sakthi Finance Limited Company Profile
Sakthi Finance Limited founded in 1955 and engaged in the business of providing loans for used commercial vehicles and construction equipment. It is part of Sakthi Group based in Coimbatore, South India. It is an investment and lending company specializing in the financing of used commercial vehicles. The vision of the company is to partner in the progress of all its customers ensuring them to provide them an end to end services and solutions related to their vehicles and become their most preferred financier. Company’s mission is to partner with Small Road Transport Operators and Medium Road Transport Operators to provide end to end services and solutions with speed, flexibility and Integrity. Sakthi Finance offers financing for the purchase of machinery, cars, jeeps and multi-purpose vehicles for infrastructure construction. The finance provided is secured by a lien on the financed asset. Company’s customer base consists of small and medium sized road transport operators mainly located in rural and semi-urban areas. As of September 2023, the company had a AUM of Rs 1,19,637.19 lakhs.
Objectives of Sakthi Finance Limited NCD Issue
The main objective of the company is to raise funds from public or institutions at fixed interest rates. The 75% of net proceeds from the issue will be used for onward lending, financing and for repayment and prepayment of principal and interest of existing borrowings (including redemption of NCDs which would become due for redemption). The remaining 25% of funds will be used to fulfill the general corporate purposes.
Financial Performance of Sakthi Finance Limited (In Rs Crore)
For the financial year concluding on March 31, 2023, Sakthi Finance Limited witnessed significant growth in its financial metrics. The company’s revenue saw an impressive increase of 5.84% compared to the previous financial year, ending on March 31, 2022. Additionally, the profit after tax experienced a surge of 31.25% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 1,347.05 | 1,300.58 | 1,269.43 | 1,240.43 |
| Revenue | 100.38 | 191.94 | 181.35 | 171.34 |
| Profit After Tax | 7.2 | 12.49 | 9.52 | 9.26 |
| Net Worth | 182.18 | 179.27 | 170.95 | 164.89 |
| Amt in Rs. Crore |
Important Details of Sakthi Finance Limited NCD 2024
| Issue Open | February 8, 2024 – February 21, 2024 |
| Security Name | Sakthi Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Oversubscription) | Rs 100.00 Crores |
| Overall Issue Size | Rs 200.00 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 | [ICRA] BBB (Stable) by ICRA Limited (ICRA). |
| Tenor | 24, 36, 60 and 85 Months |
| Series | Series I to VII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
NCD Allocation Ratio
| Category | NCDs Allocated |
| Institutional | 5% |
| Non-Institutional | 15% |
| HNI | 40% |
| Retail | 40% |
Coupon Rates of Sakthi Finance Limited NCD 2024
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | |
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months | 85 Months |
| Coupon (% per Annum) | 9.00% | NA | 9.25% | NA | 10.25% | NA | NA |
| Effective Yield (% per Annum) | 9.00% | 9.74% | 9.25% | 10.52% | 10.25% | 13.17% | 14.30% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,194.83 | Rs 1,000.00 | Rs 1,315.66 | Rs 1,000.00 | Rs 1,658.72 | Rs 2,013.13 |
NCD Rating
The NCDs proposed to be issued by the company are rated BBB Stable by ICRA Limited.
Lead Manager of Sakthi Finance Limited NCD 2024
The lead manager for Sakthi Finance Limited NCD 2024 is Bonanza Portfolio Limited.
How to Apply for Sakthi Finance Limited NCD 2024
Wait for the NCD to open for subscription, then click here to apply for the Sakthi Finance Limited NCD 2024 with Bigul.
How to Check the Allotment Status of Sakthi Finance Limited NCD 2024
The Sakthi Finance Limited NCD 2024 registrar is Link Intime India Private Ltd, then click here to check your allotment status.
FAQs
- When will the Sakthi Finance Limited NCD 2024 be open for subscription?
The subscription for the NCD opens on February 8, 2024, and is scheduled to close on February 21, 2024. However, the issue may close earlier in the case of early oversubscription.
- What is the issue size and price of the NCD?
The base issue size is Rs 100 crore with an option to retain oversubscription up to Rs 100 crore, totalling Rs 200 crore. The issue price is Rs 1,000 per NCD.
- What are the main objectives of the Sakthi Finance Limited NCD 2024?
The 75% of net proceeds from the issue will be used for onward lending, financing and for repayment and prepayment of principal and interest of existing borrowings (including redemption of NCDs which would become due for redemption). The remaining 25% of funds will be used to fulfill the general corporate purposes.
- How has Sakthi Finance Limited performed financially?
The company’s revenue saw an impressive increase of 5.84% compared to the previous financial year, ending on March 31, 2022. Additionally, the profit after tax experienced a surge of 31.25% between the financial year ending with March 31, 2023 and March 31, 2022.
- What types of loans does Sakthi Finance Limited offer?
Sakthi Finance offers loans for used commercial vehicles and multi-purpose vehicles for infrastructure construction.
- How can I apply for the Sakthi Finance Limited NCD 2024?
Wait for the NCD to open for subscription, then click here to apply for the Sakthi Finance Limited NCD 2024 with Bigul.
- How can I check the allotment status of the NCD?
The Sakthi Finance Limited NCD 2024 registrar is Link Intime India Private Ltd, then click here to check your allotment status.
- What are the tenors and coupon rates for the NCD?
The NCDs offer tenors of 24, 36, 60, and 85 months, with coupon rates varying from 9.00% in Series 1, 9.25% in Series 3, 10.25% in Series 5.
- Who is the lead manager for the Sakthi Finance Limited NCD 2024?
Bonanza Portfolio Limited is the lead manager for this NCD issue.