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Pune based realty developer DS Kulkarni group has become the well diversified group of Pune having prime interest in realty development and also in other business like Auto Dealers, IT solutions, Power Generation etc.
The company has under taken a mega realty project under the brand name of 'DSK Dream City' that is coming up fast at Mumbai-Hyderabad Highway near Pune and will have total capital outlay of around Rs. 851 crore. While the company is planning to get 40% finance by way of advance from customers, 20% from Banks as loan and remaining to be tied up in other mode. To meet around 20% funding, the company is coming out with a Secured Redeemable Non-Convertible Debentures having face value of Rs. 5000 each and coupon rate ranging from 12.5% to 12.75% with additional rate of 0.25% to special category consisting of Women (as first holder), DSK group employees, existing shareholders, Senior Citizens, Servicemen and Ex-servicemen. Thus this debt issue gives an attractive yield of around 13.37% to 13.80% per annum. Tenure for this offer ranges from 36 months to 84 months. Under category I, II and IV respectively for 36 months it has quarterly interest payment mode, for 66 months cumulative mode and for 84 months monthly payment mode. For category III which has a NCD with face value of Rs. 25000 it is annually but this category has staggered redemption mode. Post allotment these NCDs will be listed on BSE. Issue opens on 04.08014 and will close on or before 26.08.14 depending on the response. Basic issue size is of Rs. 100 crore and with green shoe option allowing keeping hundred percent oversubscription, the total issue size is Rs. 200 crore.
This offer is rated as CARE BBB+ indicating at moderate degree of safety regarding timely servicing of financial obligations and has also carry moderate credit risk.
Minimum application is to be made for 5 NCDs for category I, II and IV and 1 NCD for category III (i.e. minimum Rs. 25000) and in multiple of 1 NCD thereof, thereafter. These debentures are available in demat and physical mode, but trading will take place in demat mode only. All non-ASBA applicants will be paid interest at the rate of 7% p.a. on the amount allotted and 6% on the refundable amount.
The issue is lead managed by SBI Capital Markets Ltd and Link Intime India Pvt Ltd is the registrar to the issue. GDA Trusteeship Ltd is the Debenture Trustee.
Its a lucrative offer with poor rating, moderate investment recommended.
Review By Dilip Davda on December 10, 2019
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 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
The D S Kulkarni Developers NCD Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if D S Kulkarni Developers NCD worth investing. The D S Kulkarni Developers NCD Note sets the NCD expectations in systematic way which tells you if D S Kulkarni Developers NCD good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in D S Kulkarni Developers NCD by providing NCD recommendations i.e. subscribe, avoid and neutral.
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