August 8, 2025
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Sakthi Finance Limited – Established in 1955 and part of the Sakthi Group, Coimbatore, the company is engaged in investment and lending, with a core focus on financing used commercial vehicles. It also provides loans for machinery, cars, jeeps, and multi-purpose vehicles used in infrastructure projects, with the finance secured by a lien on the assets.
The company operates through 54 branches across Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and Puducherry. In addition, Sakthi Finance is active in renewable energy, operating 17 wind power plants with a total capacity of 5,150 kW in Tamil Nadu and Gujarat, selling power to state utilities.
Its customer base primarily comprises small and medium road transport operators (SRTOs/MRTOs) from rural and semi-urban regions.
NCD Issue Opens on 8 August 2025
NCD Issue Closes on 22 August 2025
# NCD Guidance is given at the bottom of the post
About Sakthi Finance
Sakthi Finance Limited – Incorporated in 1955, this Sakthi Group company is a registered NBFC-ML (Deposit Taking) with RBI, focusing on financing pre-owned commercial vehicles. It also funds infrastructure equipment, multi-utility vehicles, cars, jeeps, and machinery, targeting small and medium road transport operators in rural/semi-urban areas.
With 54 branches across Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and Puducherry, the company bridges the gap between banks and local moneylenders, offering competitive rates with quick processing.
Apart from lending, Sakthi Finance operates 17 windmills (capacity 5,150 kW) in Tamil Nadu and Gujarat, selling power to state utilities.
NCD Promoter:
Dr. M. Manickam and Shri. M. Balasubramaniam are the promoters of the company.
NCD Rating
| Rating Agency | NCD Rating | Outlook | Safety Degree | Risk Degree |
| ICRA Limited | BBB | Stable | Moderate degree of safety | Moderate credit risk |
Sakthi Finance NCD Details
|
Issue Open |
August 8, 2025 – August 22, 2025 |
| Security Name | Sakthi Finance Ltd. |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 75.00 Crores |
| Issue Size (Oversubscription) | Rs 75.00 Crores |
| Overall Issue Size | Rs 150.00 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 |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Ltd. |
| Category | NCD’s Allocated |
| Institutional | 5% |
| Non-Institutional | 15% |
| HNI | 40% |
| Retail | 40% |
Sakthi Finance NCD Coupon Rates
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | |
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months | 85 Months |
| Coupon (% per Annum) | 9.00% | NA | 9.00% | NA | 10.25% | NA | NA |
| Effective Yield (% per Annum) | 9.00% | 9.31% | 9.00% | 9.31% | 10.25% | 10.65% | 10.38% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,194.83 | Rs 1,000.00 | Rs 1,306.05 | Rs 1,000.00 | Rs 1,658.72 | Rs 2,013.13 |
Sakthi Finance NCD August 2025 Details & Guidance
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
For the purpose of 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.
For general corporate purposes.
.
Sakthi Finance NCD August 2025 Financial Information
| Period Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Assets | 13,676.13 | 14,244.69 | 1,300.58 |
| Total Income | 2,152.04 | 2,067.44 | 1,919.40 |
| Profit After Tax | 166.52 | 157.05 | 124.94 |
| Net Worth | 1,997.65 | 1,897.95 | 1,808.39 |
| 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 August 2025
Sakthi Finance NCD August 2025 Guidance by Paresh Gordhandas, CA & Research Analyst
1. The company has strong parentage and but small profits. It launched its credit business around 70 years ago with retail credit products and can be termed as the veteran/highly experienced entity of this business.
2. The NCDs have been rated [ICRA] BBB (Stable) by ICRA Limited (ICRA).
3. Coupon rates are attractive.
4. The capital adequacy ratio, computed on the basis of applicable RBI requirements, as on December 31, 2024 is 17.17% . The capital adequacy ratio as on March 31, 2024, March 31, 2023 and March 31, 2022 were 18.48% , 19.68% and 21.66% respectively
The company has total debt to total Assets ratio of 0.76
Its debt service coverage ratio is 0.12 and bad debts to total loan ratio is 0.28.
May Apply.
Sakthi Finance Limited, part of the Sakthi Group, is a registered NBFC-ML with RBI, primarily engaged in financing pre-owned commercial vehicles, along with loans for infrastructure equipment, cars, jeeps, and machinery.
Its core customers are small and medium road transport operators (SRTOs/MRTOs) from rural and semi-urban areas seeking quick and competitively priced financing.
The company operates 54 branches across Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and Puducherry.
Yes, it operates 17 windmills in Tamil Nadu and Gujarat with a total capacity of 5,150 kW, selling power to state electricity boards.
As of December 31, 2024, the company had an AUM of Rs.1,27,023.87 lakh, with ~94% of its operating income coming from the hire purchase business.
