Sakthi Finance Limited, an affiliate of the Sakthi Group of firms situated in Coimbatore, South India, was founded in 1955 as an investment and credit company with a major focus on financing used commercial vehicles.
The organisation also provides financing for the purchase of machinery, cars, jeeps, and multi-utility vehicles for use in infrastructure construction. The given funds are secured by a lien on the funded assets. The company has 51 branches spread over Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and the Union Territory of Puducherry. Windmill electricity is additionally produced by the company and sold to the Tamil Nadu Electricity Board and Gujarat Urja Vikas Nigam Limited. Sakthi Finance now operates 17 windmills with a total capacity of 5,150 kW in the states
of Tamil Nadu and Gujarat. Sakthi Finance’s client consists mostly of Small / Medium Road Transport Operators (“SRTOs / MRTOs”) from rural / semi-urban areas.
Issue’s Goals
The proceeds from the issue will be used for the following objects:
- Onward lending, financing, and for repayment/prepayment of principal and interest of existing borrowings.
- Meet general corporate purposes.
Sakthi Finance NCD April 2023 Detail
| Issue Open | Apr 17, 2023 – Apr 28, 2023 |
| Security Name | Sakthi Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Shelf) | Rs 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) |
| Tenor | 24, 36, 48, 60 and 85 months |
| Series | Series I to IX |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trusties | Catalyst 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 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 |
|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 48 Months | 48 Months | 60 Months | 60 Months | 85 Months |
| Coupon (% per Annum) | 9.00% | NA | 9.25% | NA | 9.50% | NA | 10.25% | NA | NA |
| Effective Yield (% per Annum) | 9.00% | 9.74% | 9.25% | 10.52% | 9.50% | 11.40% | 10.25% | 13.17% | 14.30% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,194.83 | Rs 1,000.00 | Rs 1,315.66 | Rs 1,000.00 | Rs 1,455.80 | Rs 1,000.00 | Rs 1,658.72 | Rs 2,013.13 |
NCD Rating
The NCD worth Rs. 100 Cr has been rated as BBB with a stable outlook by ICRA Credit Rating Agency. An instrument with such a rating is expected to have a moderate degree of safety regarding the timely servicing of debt financial obligations.
Company Promoters
Dr. M. Manickam and Mr. M. Balasubramaniam are the company promoters.
Sakthi Finance Limited Financial Information (Restated)
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| 31-Mar-20 | 1,220.01 | 170.23 | 11.18 | 158.29 |
| 31-Mar-21 | 1,237.75 | 171.34 | 9.26 | 164.89 |
| 31-Mar-22 | 1,269.43 | 181.35 | 9.52 | 170.95 |
| 30-Sep-22 | 1,293.99 | 93.85 | 5.88 | 173.70 |
Sakthi Finance NCD April 2023 Subscription Status
The Sakthi Finance NCD April 2023 was subscribed 1.55 times on Apr 28, 2023 1:00:00 AM. The NCD subscribed 2.58 times in Retail, 1.29 times in HNI, 0.00 times in Non-Institutional, and 0.00 times in the Institutional category.
| Category | Subscription (times) |
|---|---|
| Retail | 2.58x |
| HNI | 1.29x |
| Non-Institutional | 0.00x |
| Institutional | 0.00x |
| Total | 1.55x |
Company Contact Information
Sakthi Finance Limited
62, Dr. Nanjappa Road,
Post Box No. 3745,
Coimbatore – 641 018, Tamil Nadu
Phone: +91 (422) 2231471-474
Email: investors@sakthifinance.com
Website: https://www.sakthifinance.com
Sakthi Finance NCD April 2023 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: sakthifinance.ncd2023@linkintime.co.in
Website: https://linkintime.co.in
Sakthi Finance NCD April 2023 Lead Manager(s)
- Bonanza Portfolio Limited
Sakthi Finance NCD April 2023 FAQs
Q1. What are the face value and lot size of Sakthi Finance NCD April 2023?
Ans. The NCDs will be issued at a face value of INR 1,000 each NCD and the minimum lot size is 10 NCDs.
Q2. What is the frequency of interest payment in Sakthi Finance NCD April 2023?
Ans. The frequency of payment for Sakthi Finance NCD is Monthly, & Cumulative.
Q3. What is the basis of allotment in Sakthi Finance NCD April 2023 offer?
Ans. Sakthi Finance NCDs will be allotted on a First Come First Serve Basis.
