Sakthi Finance Limited is an RBI registered deposit taking NBFC engaged in commercial vehicle financing sector. This company’s operation activities come under section 45-IA of the Reserve Bank of India Act, 1934. The article deals with Sakthi Finance NCD Review along with issue details.
About Sakthi Finance NCD Issue Details :
- The issue opens on – April 10, 2019
- The issue close on – May 09, 2019
- Issue Type: Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) and/or Unsecured Subordinated Non-Convertible Debentures (Unsecured NCDs).
- Face value: Rs. 1000 Per NCD
- Issue size (Base) : Rs. 100.00 Cr
- Issue size (Shelf) : Rs. 50.00 Crore
- Issue price: Rs. 1000 Per NCD
- Market lot: 1 NCD
- Listing At: BSE
- Minimum order quantity: 10 NCD
- DRHP: Download
Objectives of Issuing NCD :
- For the purpose of on-ward lending, financing, and for repayment or prepayment of interest and principal of existing borrowings of Sakthi Finance Limited which is including redemption of NCDs outstanding which would become due for redemption.
- General corporate purposes of this company.
- Issue Expenses of Sakthi Finance Limited.
About Sakthi Finance :
- Sakthi Finance Limited was incorporated in 1955.
- This company’s operation activities come under section 45-IA of the Reserve Bank of India Act, 1934.
- Sakthi Finance Limited is a part of the Sakthi Group, which is engaged in the business of transportation, dairy, auto components, co-generation, industrial alcohol, sugar, automobile distribution, and wind energy.
- As an asset finance company, this company concentrates on previously owned commercial vehicles.
- Sakthi Finance Limited also helps the customers by providing financing services on buying infrastructure construction equipment, jeeps, multiutility vehicles, and other sorts of machinery.
- The target customers of this company are small and medium road transport operators belonging from a rural or semi-urban area.
- Sakthi Finance Limited provides financing services mainly in Southern India and has a strong branch network in Kerala and Tamil Nadu.
Company Strength :
- Main strength of Sakthi Finance Limited is their Unique Business Model.
- Effective origination, credit appraisal and collection processes are another strengths of this company.
- One of the strength of Sakthi Finance Limited is their long-standing presence in southern regional market.
- The strengths of this company is their experienced senior management team.
- Association with Sakthi Group.
Company Strategies :
- Expanding our reach in southern region of India.
- Attract and retain talented professionals.
- Improvement in credit rating to reduce cost of funding.
- Upgrade the infrastructure and office equipment by incorporating the state of the art information technology system.
- Customer Acquisition and Retention (CARE).
- Customer Appraisal Process (CAP).
- Customer and Asset Management Process (CAMP).
- Collection and Recovery.
Registered Office :
Sakthi Finance Limited :
Head Office –
62, Dr. Nanjappa Road,
Phone : (0422) 2231471 – 474, 4236200
Fax : (0422) 2231915
Toll free No : 1800 1030 120.
Email : email@example.com
CIN : L65910TZ1955PLC000145
Company Management :
- Dr. M. Manickam, aged 59 years, is the Chairman of this Company.
- Mr. M. Balasubramaniam, aged 57 years, is the Vice Chairman and Managing Director of this Company.
- Mr. M. Srinivaasan, aged 49 years, is the Director of this Company.
- Mr. A. Shanmugasundaram, aged 79 years, is the Director of this Company.
- Dr. A. Selvakumar, aged 60 years, is the Director of this Company.
- Mr. P. S. Gopalakrishnan, aged 80 years, is the Director of this Company.
- Mrs. Priya Bhansali, aged 49 years, is the Director of this Company.
- Mr. K. P. Ramakrishnan, aged 61 years, is the Director of this Company.
Financial Statement :
Sakthi Finance NCD Review :
The above figure is the annual profit-loss statement of the company. It reflects the net profit of the company 1,192.63 in 2018, 1,599.70 in 2017, 1,328.43 in 2016 and so on. It shows the company is still developing. The company didn’t display the other fundamental details like EPS, P/E in their DRHP. Based on our analysis, Sakthi Finance NCD Review carries a NEGATIVE view.