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Sakthi Finance has launched a public issue of rated, secured, redeemable, non-convertible debentures of face value of Rs 1,000 each. The issue, which will open on 20 June 2024, has base size of Rs 75 crore and an option to retain over-subscription for an amount not exceeding Rs 75 crore, making the overall issue size of Rs 150 crore. The issue will close on 3 July 2024.
NCDs are debt instruments which are placed with the issuing company for a specific period of time at a fixed rate of interest.
The NCDs are proposed to be listed on BSE. The bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.
The NCDs come in seven series with tenures ranging 24, 36, 60 and 85 months. Investors can choose between monthly and cumulative interest options. The coupon rate ranges from 9% to 10.25% per annum, with an effective yield of 9% to 10.65%.
The NCDs are rated "[ICRA] BBB (Stable)" by ICRA, indicating moderate safety regarding timely interest and principal payments.
At least 75% of the net proceeds will be used for onward lending, financing, and repaying existing borrowings. The remaining 25% will be used for general corporate purposes.
Sakthi Finance is an investment and credit company focusing on financing pre-owned commercial vehicles. They also offer financing for construction equipment, multi-utility vehicles, cars, and other machinery. As of 31 December 2023, their net Asset Under Management (AUM) stood at Rs 1,22,168.76 lakh.
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