Established in 1955, Sakthi Finance Limited is an investment and lending firm that operates under the Sakthi Group, headquartered in Coimbatore, South India. The company specializes in providing financing for pre-owned commercial vehicles.
The company also provides financing for the acquisition of machinery, cars, jeeps, and multipurpose vehicles used in infrastructure construction. The loans are secured by a lien on the financed assets.
The company operates a network of 54 branches across Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana, and the Union Territory of Puducherry. In addition to its financial services, the company generates electricity using wind turbines and sells it to the Tamil Nadu Electricity Board and Gujarat Urja Vikas Nigam Limited. Sakthi Finance currently owns 17 wind power plants in Tamil Nadu and Gujarat, with a combined capacity of 5,150 kW.
Sakthi Finance primarily serves small and medium-sized road transport operators (SRTOs and MRTOs) based mainly in rural and semi-urban regions.
As of December 31, 2023, the company had assets under management (AUM) of ₹1,22,168.76 lakhs.
Sakthi Finance NCD IPO June 2024 Detail
| Issue Open | June 20, 2024 – July 3, 2024 |
| Security Name | Sakthi Finance Limited |
| 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 |
| Credit Rating | [ICRA] BBB (Stable) by ICRA Limited. |
| Tenor | 24, 36, 60 and 85 months |
| Series | Series I to VII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
Sakthi Finance NCD IPO Allocation Ratio
| Category | NCD’s Allocated |
|---|---|
| Institutional | 5% |
| Non-Institutional | 15% |
| HNI | 40% |
| Retail | 40% |
Sakthi Finance Limited NCD IPO 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 | 9.25% | NA | 10.25% | NA | NA |
| Effective Yield (% per Annum) | 9.00% | 9.31% | 9.25% | 9.58% | 10.25% | 10.65% | 10.38% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,194.83 | Rs 1,000.00 | Rs 1,315.66 | Rs 1,000.00 | Rs 1,658.72 | Rs 2,013.13 |
Sakthi Finance NCD IPO Rating
The Non-Convertible Debentures (NCDs) that the company plans to issue have been rated [ICRA] BBB (Stable) by ICRA Limited.
Company Promoters
Dr. M. Manickam and Shri. M. Balasubramaniam are the promoters of the company.
Sakthi Finance Limited Financial Information (Restated)
Restated Financial Information for Sakthi Finance Limited
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,381.26 | 1,300.58 | 1,269.43 | 1,240.43 |
| Revenue | 152.59 | 191.94 | 181.35 | 171.34 |
| Profit After Tax | 11.52 | 12.49 | 9.52 | 9.26 |
| Net Worth | 185.21 | 179.27 | 170.95 | 164.89 |
| Amount in ₹ Crore | ||||
Objects of the Issue
The company plans to use the net proceeds from the issuance to fund the following objectives:
- To be used for onward lending and financing, as well as for the repayment or prepayment of principal and interest on existing borrowings, including the redemption of NCDs maturing for repayment.
- For general corporate purposes.
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