Sakthi Finance Limited NCD (Sakthi Finance NCD April 2019) Detail

Apr 10, 2019 - May 9, 2019

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

Sakthi Finance NCD April 2019 Detail

Issue OpenApr 10, 2019 - May 9, 2019
Security NameSakthi Finance Limited
Security TypeSecured, Redeemable, Non-Convertible Debentures (Secured NCDs) and/or Unsecured Subordinated Non-Convertible Debentures (Unsecured NCDs)
Issue Size (Base)Rs 100.00 Crores
Issue Size (Shelf)Rs 50.00 Crores
Issue PriceRs 1000 per NCD
Face ValueRs 1000 each NCD
Minimum Lot size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit RatingICRA BBB/Stable
Tenor24 months/36 months/48 months/61 months

Series 1 to Series 11

Payment FrequencyMonthly, Annual and Cumulative
Basis of AllotmentPriority Basis

NCD Allocation Ratio

NCD's allocated in each investor category:

Category ?NCD's Allocated
Category 15%
Category 25%
Category 390%
Category 40%

NCD's Offered

NCD's offered in each investor category:

Category ?NCD's Reserved
Category 150,000
Category 250,000
Category 3900,000
Category 40
Total NCD's1,000,000

Coupon Rates

Coupon Rates for Eash Series

  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 36 Months 36 Months 36 Months 48 Months 48 Months 48 Months 61 Months 61 Months 61 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 1,335 Rs 1,000 Rs 1,000 Rs 1,485 Rs 1,000 Rs 1,000 Rs 1,673

NCD Rating Detail

The NCDs proposed to be issued by our Company have been rated by ICRA Limited ("ICRA"). ICRA has vide its letter no. RTG/Chen/109/18-19 dated February 11, 2019, assigned and vide its letter no. Reval/Chen/145/18-19 dated March 25, 2019 revalidated, a rating of "[ICRA] BBB (Stable)" for an amount up to ?15,000 lakh for the NCDs. The rating of the NCDs by ICRA indicates moderate degree of safety regarding timely servicing of financial obligations and carry moderate credit

Company Promoters:

Dr. M. Manickam and Mr. M. Balasubramaniam are the promoters of the company.

Objects of the Issue:

Details of use of proceeds:

I. For the purpose of on-ward lending, financing, and for repayment/ prepayment of interest and principal of existing
borrowings of the Company (including redemption of NCDs outstanding which would become due for redemption)
II. General corporate purposes
III. Issue Expenses

Sakthi Finance NCD April 2019 Prospectus

Sakthi Finance NCD April 2019 Rating

Rating:Rated 3.5 stars

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Sakthi Finance NCD April 2019 Reviews

Company Contact Information

Sakthi Finance Limited
62, Dr. Nanjappa Road,
Post Box No. 3745,
Coimbatore - 641 018, Tamil Nadu

Phone: +91 (422) 2231471-474/423

Sakthi Finance NCD April 2019 Registrar

S.K.D.C Consultants Limited
   Kanapathy Towers, 3rd Floor,
   1391/A1, Sathy Road, Ganapathy,
   Coimbatore - 641 006, Tamil Nadu

Phone: 91-422-6549995, 2539835-36

Sakthi Finance NCD April 2019 Lead Manager(s)

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