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Sakthi Finance Ltd's maiden NCD offer – "Apply"

Published on Thursday, February 26, 2015 by Dilip Davda

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Sakthi Finance Ltd (SFL) is a south based RBI registered NBFC engaged in asset financing business. This company is launching its maiden NCD offer of Rs. 100 crore. It is issuing Secured Redeemable Non-Convertible Debentures of Rs. 100 each. Issue opens for subscription on 27.02.15 and will close on or before 19.03.15. Minimum application is to be made for 100 NCDs (Rs. 10000) and in multiple of 10 NCDs thereon, thereafter. SFL is offering eight options for the said issue and tenure ranges from 24, 36 and 48 months with interest payment modes under monthly, annually and cumulative as per the choice of investors. Coupon rates for this offer ranges from 11.00% to 11.50% giving a yield of 11.00% to 12.01%. The offer is available for subscription under demat as well as physical mode, however, trading will take place only in demat mode. ICRA has graded this offer as ICRA BBB (stable) indicating moderate degree of safety regarding timely servicing of financial obligations and carry moderate credit risk.

The company is doing business of asset financing and primarily financing against pre-owned vehicles. It also finances for purchasing infrastructure construction equipments, multi-utility vehicles, cars, jeeps and other machinery. Most of the clients are from small and medium road transport operators from rural and semi-urban areas. It has been posting steady growth in its top and bottom lines for past few years.

Issue is lead managed by Dalmia Securities Pvt Ltd and SKDC Consultants Ltd is the registrar to the issue. GDA Trusteeship Ltd is the debenture trustee. Post allotment NCDs will be listed on BSE.

This company has loyal investors base in south and hence is expected to receive good response.

Remarks: Moderate investment recommended considering its base and track record.

(Disclaimer: Author has no plans to invest in this offer.)

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About Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com


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