SMC Global NCD Oct 25 Issue Review - (Not Rated)

•    This is the 3rd debt offer from SGSL since July 2024.
•    Last NCD Issue was in the month of April 2025.
•    This NCD issue is rated ICRA A/stable, but coupon rates lowered by 25 bps across.
•    It marked steady growth in its top and bottom lines for the reported periods.
•    Well-informed/risk savvy investors looking for steady income may park moderate funds for the medium to long term. 

PREFACE:
There APPEARS TO BE SOME confusion on the time line of this debt offer. While its issue ad in todays Financial Express is indicating opening on 16.10.25 and closing on 24.10.25, whereas the offer document i.e., prospectus is indicating as opening on 27.10.25 and closing on 10.11.25. Bearing this garble, all other fundamentals and details remains same and the review is based on these parameters. The final time line for this issue will be updated post clarification from the concerned parties, but other materials will remain same.

ABOUT COMPANY:
SMC Global Securities Ltd. (SGSL) was established in the year 1994, it has a diversified financial services business model with presence in brokerage services, portfolio management services, investment banking, wealth management, distribution of financial products, financing (NBFC), insurance broking, real estate brokerage, arbitrage & HFT proprietary trading, clearing and depository services, fixed income securities, financial, mortgage and loan advisory services. As of June 30, 2025, the company services clients through a network of 210 branches including one international branch in Dubai and 2137 registered Authorized Persons spread over 412 cities across India. 

Its Shares were offered to the public through an initial public offering in the year 1995 and currently
the equity shares of the Company are listed and traded on the NSE and BSE. Subsequently, in the financial year 2024-25, the Company made its Initial Public Offering of Non-Convertible Debentures and subsequent issue of Non-Convertible Debentures in the financial year 2025-26. The Non-Convertible Debentures issued through both the issues are currently listed and traded on BSE.

ISSUE DETAILS:
The company is coming out with its 3rd debt offer of Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) of face value of Rs. 1000 each. The base size of the issue is Rs. 75 cr. land it has a green shoe option for retaining oversubscription to the tune of Rs. 75 cr., thus making the overall issue size of Rs. 150 cr. for 1500000 NCDs. 

The company has allocated 10% for Institutional portion, 25% for non-Institutional portion, 25% for HNIs and 40% for Retail investors. 

The company is spending Rs. 2.98 cr. for this debt offer and from the net proceeds, it will utilize at least 75% for working capital requirements and maximum up to 25% for general corporate purposes. 

The issue opens for subscription on October 16, 2025, and will close on or before October 24, 2025. The minimum application to be made is for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE. (The time line mentioned here is based on its issue ad in FE dated 14.10.25).

The company is offering a coupon rates ranging from 9.75% to 10.25% with tenors of 24 months, 36 months and 60 months with interest payment frequency of Monthly, Annual or cumulative based on the series opted by the investors. There is no PUT and CALL option applicable. The company has lowered the coupon rates by 25 bps for this debt offer.

The debt offer is solely lead managed by Corporate Professionals Capital Pvt. Ltd., and MUFG Intime India Pvt. Ltd. is the registrar to the issue. IDBI Trusteeship Services Ltd. is the debenture trustee. 

CREDIT RATING:
This debt issue is rated ICRA A/Stable by ICRA Ltd. Ratings issued by ICRA Limited are valid as on the date of this Prospectus and will continue to be valid for the life of the instrument unless withdrawn or reviewed. Instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk. 

The rating provided by ICRA Limited may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions.

FINANCIAL PERFORMANCE:
On financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 1120.82 cr. / Rs. 174.57 cr. (FY22), Rs. 1215.65 cr. / Rs. 120.40 cr. (FY23), and Rs. 1644.58 cr. / Rs. 188.28 cr. (FY24), and Rs. 1785.72 cr. / Rs. 146.81 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 29.95 cr. on a total income of Rs. 425.78 cr. 

Its debt/equity ratio of 1.37 as of June 30, 2025, will stand enhanced to 1.61 post this issue. 

Its paid-up equity capital of Rs. 20.94 cr.as of June 30, 2025, was supported by free reserves of Rs. 1225.70 cr. As of the said date, its outstanding borrowings were Rs. 979.03 cr.