Sakthi Finance Limited NCD: Everything you need to know

18 Apr 2023 , 01:31 PM

Sakhti Finance Limited is a flagship company of Sakthi Group based in Coimbatore. It is an investment and credit company with a primary focus on financing pre-owned commercial vehicles. The company also provides finance for the acquisition of machinery, cars, jeeps, and multi-utility vehicles for use in building infrastructure. The finances provided are secured by a lien on the assets financed. It is coming up with a debt offer which is starting for subscription from April 17 to April 28, 2023. Click here to apply in the Sakhti Finance Limited NCD. 

The company is raising Rs 100 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received rating of ICRA BBB (Stable).

Sakhti Finance Limited has reserved 5% quota for institutional investors, 15% for non-institutional investors, 40% for high net-worth investors, and 40% for retail investors.

The company will use the net proceeds from the issue towards onward lending, financing, and for repayment/prepayment of principal and interest of existing borrowings and other general corporate purposes.

These NCDs have tenures of 24 months, 36 months, 48 months, 60 months and 85 months. It offers coupon rates from 9.00% to 10.25% based on the selection of investors. The frequency of interest payments will be Monthly and Cumulative as per the choice of investors. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of Sakhti Finance Limited

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8	Series 9
Frequency of Interest Payment	Monthly	Cumulative	Monthly	Cumulative	Monthly	Cumulative	Monthly	Cumulative	Cumulative
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	24 Months	24 Months	36 Months	36 Months	48 Months	48 Months	60 Months	60 Months	85 Months
Coupon (% per Annum)	9.00%	NA	9.25%	NA	9.50%	NA	10.25%	NA	NA
Effective Yield (% per Annum)	9.00%	9.74%	9.25%	10.52%	9.50%	11.40%	10.25%	13.17%	14.30%
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 1,455.80	Rs 1,000.00	Rs 1,658.72	Rs 2,013.13

 

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/apr-2023/1681382407848.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

Sakthi Finance Limited NCD is managed by Bonanza Portfolio Limited. Link Intime India Private Limited is the registrar of NCD and Catalyst Trusteeship Limited is debenture trustee to the same.