December 28, 2024
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Chemmanur Credits and Investments NCD Dec 2024 Details
NCD Issue Opens on 31 December 2024
NCD Issue Closes on 13 January 2025
# NCD Guidance will given at the bottom of the post
About the Company:
Sakthi Finance was incorporated in the year 1955 and has a track record of nearly four decades in commercial vehicle financing segment. It is registered with RBI, under Section45-IA of the Reserve Bank of India Act, 1934, with Department of Non-Banking Supervision, Chennai, as a NBFC Deposit-taking -Investment and Credit Company. It is part of “Sakthi Group” of companies based in Coimbatore, South India, and a reputed and well-known Industrial conglomerate having major presence in sugar, industrial alcohol, automobile distribution, auto components, dairy, co-generation, wind energy and transportation. It is an Investment and Credit company with primary focus on financing pre-owned commercial vehicles.
It also provides finance for purchasing infrastructure construction equipment, multi-utility vehicles, cars, jeeps and other machinery. The finances provided are secured by lien on the assets financed.
Its target customers predominantly comprise Small / Medium Road Transport Operators (“SRTOs / MRTOs”) and primarily hail from rural / semi-urban area. The SRTOs / MRTOs looks for speedy disposal of finance at competitive rates. It has identified this opportunity and positioned ourselves between the organized banking sector and local money lenders by offering the finance at competitive rate with flexible and speedy lending services to its customers. It operates primarily in the Southern region of the country mainly in the States of Tamil Nadu and Kerala through its branch network and customer service points. It has network of53branches, located in Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana and Union Territory of Puducherry. In addition to finance business, it generates power from windmills and sell it to Tamil Nadu Electricity Board and Gujarat Urja Vikas Nigam Limited.
At present, it has 17 windmills with an aggregate capacity of 5,150 kW located in the States of Tamil Nadu and Gujarat. As on September 30, 2023, it has an AUM of Rs. 1,19,637.19lakh. Its AUM has grown from Rs. 1,09,353.73 lakh as of March 31, 2021to Rs. 1,14,500.10 lakh as of March 31, 2023, at a CAGR of 2.33%. The income from hire purchase business constitutes about 94% of operating income of the Company for the FY ended March 31, 2023. For FY 2023, the income from hire purchase business was Rs. 18,603.02lakh as against Rs. 16,446.30 lakh for FY 2021, registering a YoY growth of 13.11% and CAGR 4.19%
Get more details about the company @ http://www.sakthifinance.com/
NCD Promoter:
The Promoter of the company is Chemmanur Devassykutty Boby.
NCD Rating
The NCDs proposed to be issued under the Issue have been rated IND BBB-/Stable by India Ratings and Research Private Limited.
| Chemmanur Credits and Investments NCD Dec 2024 Detail | |
| Issue Open | December 31, 2024 – January 13, 2025 |
| Security Name | Chemmanur Credits And Investments Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 50.00 Crores |
| Issue Size (Oversubscription) | Rs 40.00 Crores |
| Overall Issue Size | Rs 90.00 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 | IND BBB-/Stable by India Ratings and Research Private Limited. |
| Tenor | 367 Days, 18, 24, 36, 60, and 70 Months |
| Series | Series I to IX |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 40% |
| Retail | 50% |
| Chemmanur Credits And Investments 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 | Monthly | Monthly | Monthly | Annual | Annual | Cumulative | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 367 Days | 18 Months | 24 Months | 60 Months | 36 Months | 60 Months | 367 Days | 24 Months | 70 Months |
| Coupon (% per Annum) | 9.50% | 10.75% | 11% | 12% | 11.15% | 12.10% | NA | NA | NA |
| Effective Yield (% per Annum) | 9.92% | 11.30% | 11.57% | 12.68% | 11.15% | 12.10% | 9.50% | 11% | 12.62% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,095.52 | Rs 1,232 | Rs 2,000.28 |
Objects of the Issue
The company proposes to utilize the funds which are being raised through the Issue:
The Net Proceeds raised through this Issue will be utilized for the following purposes in the ratio provided below:
At least 75% for onward lending, financing, and for repayment/prepayment of principal and interest of existing borrowings (including redemption of NCDs which would become due for redemption) of the Company.
Up to 25% for general corporate purposes.
.
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| Company Financials | |||
| Chemmanur Credits And Investments Limited Financial Information (Restated Consolidated) | |||
| Chemmanur Credits And Investments Limited’s revenue increased by 28% and profit after tax (PAT) rose by 115% between the financial year ending with March 31, 2024 and March 31, 2023. | |||
| Period Ended | 31.03.2024 | 31.03.23 | 31.03.22 |
| Assets | 635.04 | 499.42 | 430.46 |
| Revenue | 106.14 | 83.21 | 73.49 |
| Profit After Tax | 1.72 | 0.8 | 2.66 |
| Reserves and Surplus | 29.03 | 27.41 | 26.52 |
| Amount in Rs Crore | |||
Address of the Company
Sakthi Finance Limited
62, Dr. Nanjappa Road,
Post Box No. 3745,
Coimbatore – 641 018
NCD Lead Managers
Bonanza Portfolio Limited
NCD Registrar
Link Intime India Private Ltd
Sakthi Finance NCD February 2024
Red Herring Prospectus
Analysis & Guidance:
1)
The NCDs proposed to be issued under the Issue have been rated IND BBB-/Stable by India Ratings and Research Private Limited.
2) Certain parameters require attention. The interest coverage ratio is just 1.18%, which we believe is somewhat risky. Gross Stage 3 Assets ratio is 5.7% and Net Stage 3 Assets ratio is 2.97, which are also on higher side. The company has Tier-1 Capital Adequacy ratio of just 13.40%, which we consider somewhat low. The absolute amounts of net profits, compared to total assets, compared to total income etc. are very small.
3) Considering above aspects, the rate of interest is not quite attractive.
May be avoided.
| Sakthi Finance NCD February 2024 | |
| Subscription Status | |
| On31.12.2024 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 0.00 T |
| Non-Institutional | 0.00 T |
| HNI | 0.00 T |
| Retail | 0.00 T |
| Total | 0.00 T |
