[.]| Listing at BSE | Fri, Mar 13, 2020 - Thu, Apr 30, 2020
Sakthi Finance Ltd. NCD issue is a public issue of secured, redeemable, non-convertible debenture , issued under a Shelf Prospectus of ₹200.00 Cr with a base issue size of ₹100.00 Cr and an option to retain oversubscription up to ₹[.] Cr, aggregating to a tranch issue size of ₹[.] Cr. The NCDs are offered at a face value ₹1000 each and an issue price of ₹1000 per NCD.
Sakthi Finance Ltd. NCD issue opens on Mar 13, 2020 and closes on Apr 30, 2020. NCD are proposed to be listed on BSE.
The minimum lot size is 10 NCDs, requiring a minimum investment of ₹ 10,000 , while the market lot for trading is 1 NCD.
The issue offers interest rates ranging from per annum to per annum, depending on the series and tenure selected.
The NCD has been rated: .
Dalmia Securities Pvt.Ltd. is the Lead Manager to the issue, is the Debenture Trustee, and S.K.D.C.Consultants Ltd. is the Registrar to the Issue.
Investors are advised to refer to the NCD Offer Document for detailed information on risk factors, financials, and the terms of the issue.
Open Date
Fri, Mar 13, 2020
Close Date
Thu, Apr 30, 2020
Issue Size (Overall)
[.]
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | Series 11 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Annually | Cumulative | Monthly | Annually | Cumulative | Monthly | Annually | Cumulative |
| Tenor | 24 Months | 24 Months | 39 Months | 39 Months | 39 Months | 49 Months | 49 Months | 49 Months | 62 Months | 62 Months | 62 Months |
| Coupon Rate (Retail) For Category I & II/ for III & IV | 9.50% | NA | 9.75% | 9.75% | NA | 10% | 10% | NA | 10.25% | 10.25% | NA |
| Amount on Maturity For Category I & II/ for III & IV | Rs 1,000 | Rs 1,207 | Rs 1,000 | Rs 1,000 | Rs 1,368 | Rs 1,000 | Rs 1,000 | Rs 1,497 | Rs 1,000 | Rs 1,000 | Rs 1,687 |
Dr. M. Manickam and Mr. M. Balasubramaniam are the promoters of the company.
Incorporated in 1955, Sakthi Finance Limited is an RBI registered deposit-taking NBFC engaged in commercial vehicle financing sector. Its operation activities come under section 45-IA of the Reserve Bank of India Act, 1934. The company is a part of the Sakthi Group, which is engaged in the business of transportation, dairy, auto components, co-generation, industrial alcohol, sugar, automobile distribution, and wind energy.
As an asset finance company, the company concentrates on previously owned commercial vehicles. Apart from this, it also helps the customers by providing financing services on buying infrastructure construction equipment, jeeps, multi-utility vehicles, and other sorts of machinery.
The target customers of Sakthi Finance Limited are small and medium road transport operators belonging from a rural or semi-urban area. The company provides financing services mainly in Southern India and has a strong branch network in Kerala and Tamil Nadu.
The company is also involved in selling electricity (which is generated from its 17 windmills) to Gujarat Urja Vikas Nigam Limited and Tamil Nadu Electricity Board. The AUM of the company was Rs 92,385.67 lakh as on 30th Sep 2018 at CAGR of 4.70% from 31st March 2014. The income generated from hire purchase business was Rs 12,644.05 lakh for the financial year 2014 which is increased at CAGR of 5.58% to Rs 15,708.40 lakh for the financial year 2018.
The competitive strengths of the company are:
1. The high growth momentum of the industry
2. Back support of reputed Sakthi group
3. Prominent reach in Southern Region
4. Four decades of experience in the field
5. Unique business model
The details of the Net Proceeds are set out are as follow:
1. Issue related expenses
2. For the purpose of on-ward lending, financing and for repayment / prepayment of principal and interest of existing borrowings of the company
3. For general corporate purposes
Sakthi Fin NCD issue close date is extended to 30th April 2020 from 9th April 2020
[Dilip Davda] Financial performance is showing inconsistency with higher NPAs. Higher debt/equity ratio post issue raises concern. This offer with poor rating of BBB/Stable (Other) may be ignored. (Avoid). Read detail review...
The Sakthi Fin NCD March 2020 was subscribed 1.10 times on Apr 30, 2020 18:00. The NCD subscribed .
Sakthi Finance Ltd.
62, Dr. Nanjappa Road,
Post Box No. 3745,
Coimbatore - 641 018, Tamil Nadu
Coimbatore, Tamil Nadu, 641018
NSE and BSE offer NSEgoBid and BSEDirect apps/websites through which retail investors can apply for NCDs up to Rs 5 lakhs. Not all brokers and banks provide the facility to apply for NCD online.
To apply for an NCD online, the investor should fill in the NCD bid details online and provide the details of the DP and bank accounts (ASBA/UPI) as requested. In the case of a UPI application, the investor needs to approve the UPI mandate to complete the application process.
Steps to invest in NCD IPO through GoldenPi
Retail investors can apply for an IPO online if the investment amount is less than or up to 10 lakhs.
Steps to apply for NCD IPO with Indiabonds:
You can buy or invest in NCD IPOs through the following intermediaries:
The investor can apply for the NCD IPO online through NCD intermediaries such as a registered stockbroker, provided the broker offers an online application for the NCD IPO. Not many brokers allow you to invest in an NCD IPO online. Currently, very few brokers, such as Nuvama Wealth, Angel One, and SBI Securities, offer the facility to apply for NCD IPOs electronically. You should check with your broker or intermediary to see if the online application facility for the NCD IPO is available through them.
Refer to the detailed guidelines on NSEgoBID and BSEDirect for information on the registration process and how to apply for NCDs through the exchange.
Important links :
Read more about NCD Application Process.
The minimum amount required for NCD investment is Rs. 10,000.
Generally, the minimum lot size of NCD is 10, and the face value is 1,000.
NCD allotment can be checked on the BSE website or with the Registrar once the allotment has been made.
Steps to check the NCD allotment status at the BSE:
Alternatively, the applicant can also check the allotment status on the respective website of the Registrar for the issue. The applicant will need their PAN details or the applicant's Aadhaar number to check the status.
Generally, all applicants receive full allotment due to the retention of the oversubscription option.
Read more information on NCD Subscription and NCD Allotment Process.
No, you cannot withdraw or redeem Sakthi Finance Ltd. NCDs before maturity directly from the company. However, there are a couple of options available if you want to exit early:
If the NCDs are listed on stock exchanges (like BSE/NSE), you can:
Only possible if a "call option" exists.
Read more about NCD Subscription and Allotment Process
Bid Cancellation and Withdrawal Policy for NCD Applicants
Note:
The specific process and conditions for post-closure cancellation vary by issuer. Applicants should refer to the Offer Document for issuer-specific guidelines.
