Sakthi Finance Limited Issues Rated, Secured, Redeemable NCDs for the Eighth Time in Public
Sakthi Finance Limited (SFL) is an NBFC Middle Layer-Deposit-Taking-Investment and Credit Company registered with the RBI. It was founded in 1955.
SFL is a member of the reputable and well-known “Sakthi Group” of enterprises, which is headquartered in Coimbatore, South India. The group is well-known for its operations in the fields of sugar, industrial alcohol, automotive components, dairy, cogeneration, wind energy, and transportation.
Financing pre-owned commercial cars is SFL’s main priority. Additionally, SFL offers financing for the purchase of machinery, automobiles, jeeps, multipurpose vehicles, and other forms of infrastructure development equipment. A lien on the financed assets secures the given funds.
Small and medium road transport operators (SRTOs / MRTOs), mostly from rural and semi-urban regions, make up SFL’s clientele. Customers want cheap rates and quick loan delivery; SFL saw this market gap and filled it by providing flexible and quick loan services to clients at reasonable rates, sandwiching itself between local money lenders and organized banks.
SFL is spread over more than 50 branches throughout Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, and Telangana.
The Issue: On February 8, 2024, SFL opened the public offering of its Rated, Secured, Redeemable, Non-Convertible Debentures (NCDs). The issue’s specifics are listed below:
Face Value of Rs. 1000 per NCD
Issue Size: Rs 100 Cr, with a 100 Cr retention option for oversubscription
Minimum Investment: Rs 10,000 / 10 NCDs ICRA Limited has assigned the NCDs a BBB (Stable) rating.
Open issue as of 8.2.2024
The issue ends on 21.2.2024.
Tenor between 24 and 85 months
Interest Rate: 9% to 10.25% per year
The yield on cumulative options is determined using quarterly compounding for 24, 26, and 60 months, quarterly compounding for 84 months, and monthly compounding for the remaining time. The yield ranges from 9.74% to 14.30% pa. The yield is calculated annually.
Eighth Public Issue of Rated, Secured, Redeemable NCDs by Sakthi Finance Limited
Before making any investment decisions, investors are urged to read the prospectus dated January 30, 2024, which can be found on our website, www.sakthifinance.com.
It is suggested that the NCDs be listed for trade on the BSE.
Call +91 73977 30308 or go to www.sakthifinance.com to apply.
