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Sakthi Finance Limited NCD (Sakthi Finance NCD February 2024) Detail

February 8, 2024 - February 21, 2024
Sakthi Finance Limited Logo

Founded in 1955, Sakthi Finance Limited, part of the Sakthi Group based in Coimbatore, South India, is an investment and lending company specializing in the financing of used commercial vehicles.

The company also offers financing for the purchase of machinery, cars, jeeps and multi-purpose vehicles for infrastructure construction. The financing provided is secured by a lien on the financed assets.

The company has a network of 53 branches in Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and the Union Territory of Puducherry. The company also generates power from wind turbines and sells it to the Tamil Nadu Electricity Board and Gujarat Urja Vikas Nigam Limited. Currently, Sakthi Finance has 17 wind power plants with a total capacity of 5,150 kW in the states of Tamil Nadu and Gujarat.

Sakthi Finance's customer base consists of small/medium-sized road transport operators (SRTOs/MRTOs) mainly located in rural/semi-urban areas.

As of September 30, 2023, the company had assets under management (AUM) of Rs.1,19,637.19 lakhs.

Sakthi Finance NCD February 2024 Detail

Issue Open February 8, 2024 - February 21, 2024
Security Name Sakthi Finance Limited
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base) Rs 100.00 Crores
Issue Size (Oversubscription)Rs 100.00 Crores
Overall Issue SizeRs 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/sCatalyst Trusteeship Limited

NCD Allocation Ratio

Category ? NCD's Allocated
Institutional 5%
Non-Institutional 15%
HNI 40%
Retail 40%

NCD's Offered by Category

Category ? NCD's Reserved
Institutional 50,000
Non-Institutional 150,000
HNI 400,000
Retail 400,000
Total NCD's 1,000,000

Sakthi Finance Limited NCD Coupon Rates

#Series 1Series 2Series 3Series 4Series 5Series 6Series 7
Frequency of Interest PaymentMonthlyCumulativeMonthlyCumulativeMonthlyCumulativeCumulative
NatureSecuredSecuredSecuredSecuredSecuredSecuredSecured
Tenor24 Months24 Months36 Months36 Months60 Months60 Months85 Months
Coupon (% per Annum)9.00%NA9.25%NA10.25%NANA
Effective Yield (% per Annum)9.00%9.74%9.25%10.52%10.25%13.17%14.30%
Amount on Maturity (In Rs.)Rs 1,000.00Rs 1,194.83Rs 1,000.00Rs 1,315.66Rs 1,000.00Rs 1,658.72Rs 2,013.13

NCD Rating

The NCDs proposed to be issued by the company are rated [ICRA] BBB (Stable) by ICRA Limited (ICRA).

Company Promoters

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

Company Financials

Sakthi Finance Limited Financial Information (Restated)

Sakthi Finance Limited's revenue increased by 5.84% and profit after tax (PAT) rose by 31.25% between the financial year ending with March 31, 2023 and March 31, 2022.

Period Ended30 Sep 202331 Mar 202331 Mar 202231 Mar 2021
Assets1,347.051,300.581,269.431,240.43
Revenue100.38191.94181.35171.34
Profit After Tax7.2012.499.529.26
Net Worth182.18179.27170.95164.89
Amount in ₹ Crore

Objects of the Issue

The Net Proceeds raised through this Issue will be utilized for the following purposes in the ratio provided below:

  1. At least 75% for onward lending, financing, and for repayment/prepayment of principal and interest of existing borrowings (including redemption of NCDs which would become due for redemption) of the Company.
  2. Up to 25% for general corporate purposes.

Sakthi Finance NCD February 2024 Prospectus

Sakthi Finance NCD February 2024 Subscription Status

The Sakthi Finance NCD February 2024 was subscribed 1.66 times on February 21, 2024 6:24:00 PM. The NCD subscribed 2.89 times in Retail, 1.25 times in HNI, 0.02 times in Non-Institutional, and 0.00 times in the Institutional category.

Category ?Subscription (times)
Retail2.89x
HNI1.25x
Non-Institutional0.02x
Institutional0.00x
Total1.66x

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Company Contact Information

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

Phone: +91 (422) 2231471-474
Email: sakthif_info@sakhtifinance.com
Website: http://www.sakthifinance.com/

Sakthi Finance NCD February 2024 Registrar

Link Intime India Private Ltd
   Link Intime India Private Ltd
   C 101, 247 Park, L.B.S.Marg,
   Vikhroli (West), Mumbai - 400083

Phone: +91-22-4918 6270
Email: ncd2023@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html

Sakthi Finance NCD February 2024 Lead Manager(s)


3 Comments

3. K Ranganathan     Link|March 31, 2024 11:26:17 AM
The company ha s not yet credited the First Monthly interest which wa due on 27th Mar 2024.
2. Ranjan Dutta     Link|February 10, 2024 12:39:45 AM
Effective Yield (% per Annum) mentioned against Cumulative Options are incorrect. Where can I raise the concern?
1. Ranjan Dutta     Link|February 10, 2024 12:38:42 AM
Effective Yield (% per Annum) mentioned against the Cumulative Options are incorrect. Where can we raise this concern?

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