Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
• This is the maiden debt offer from SGSL.
• This NCD issue is rated CRISIL A/stable and ICRA A/stable.
• The coupon rates are lucrative considering its rating.
• It marked steady growth in its top lines, while bottom line fluctuated for the reported periods.
• Investors looking for steady income may park funds for the medium to long term.
• The allotment will be on "First come - First Served" basis.
ABOUT COMPANY:
SMC Global Securities Ltd. (SGSL) has a diversified financial services business model with presence in brokerage services, portfolio management services, investment banking, wealth management, distribution of financial products, financing (NBFC), insurance broking, real estate brokerage, clearing and depository services, fixed income securities, financial, mortgage and loan advisory services.
As of March 31, 2024, it serviced clients through a network of 188 branches including one international branch in Dubai and 2,327 registered Authorized Persons spread over 437 cities across India. The Company's Shares were offered to the public through an initial public offering in the year 1995 and currently, the equity shares of the Company are listed and traded on the NSE and BSE.
Though it marked growth in total equity trading and total commodity trading volumes, its market share has shown decline from 1.85% for FY22, to 0.77% for FY24, and 4.76% to 1.38% respectively.
The company continued to invest in technology, infrastructure and innovation, to stay ahead in its services offerings. It has STOXKART, SMC ACE mobile apps and web trading platform www.smctradeonlinbe.com.
ISSUE DETAILS:
The company is coming out with its maiden debt offer of Secured, Rated, Listed, Redeemable Non-NCDs) of face value of Rs. 1000 each. The base size of the issue is Rs. 75 cr. land it has a green shoe option for retaining oversubscription to the tune of Rs. 75 cr., thus making the overall issue size of Rs. 150 cr. for 1500000 NCDs.
The company has allocated 10% for Institutional portion, 25% for non-Institutional portion, 25% for HNIs and 40% for Retail investors. Allotment will be made on "first come - first served" basis.
The company is spending Rs. 3.42 cr. for this debt offer and from the net proceeds, it will utilize at least 75% for working capital requirements and maximum up to 25% for general corporate purposes.
The issue opens for subscription on July 198, 2024, land will close on or before August 01, 2024. The minimum application to be made is for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD (i.e. Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE.
The company is offering a coupon rates ranging from 9.94% to 10.40% with tenors of 24 months, 36 months and 60 months with interest payment frequency of Monthly, Annual or cumulative based on the series opted by the investors.
The debt offer is solely lead managed by Corporate Professionals Capital Pvt. Ltd., and Link Intime India Pvt. Ltd. is the registrar to the issue. IDBI Trusteeship Services Ltd. is the debenture trustee.
CREDIT RATING:
This debt issue is rated CRISIL A/Stable by CRISIL Ratings Ltd., and ICRA A/Stable by ICRA Ltd. Ratings issued by CRISIL Ratings Limited and ICRA Limited are valid as on the date of this Prospectus and will continue to be valid for the life of the instrument unless withdrawn or reviewed. Instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
The rating provided by CRISIL Ratings Limited and ICRA Limited may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions.
FINANCIAL PERFORMANCE:
On financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 1120.82 cr. / Rs. 174.57 cr. (FY22), Rs. 1215.65 cr. / Rs. 120.40 cr. (FY23), and Rs. 1645.04 cr. / Rs. 188.28 cr. (FY24).
Its debt/equity ratio of 1.30 as of March 31, 2024, will stand enhanced to 1.56 post this issue. As of the said date, promoter's holding was 67.28%. Its paid-up equity capital of Rs. 20.94 cr. was supported by free reserves of Rs. 1074.79 cr.
Review By Dilip Davda on July 17, 2024
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The SMC Global Securities NCD 2024 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if SMC Global Securities NCD 2024 worth investing. The SMC Global Securities NCD 2024 Note sets the NCD expectations in systematic way which tells you if SMC Global Securities NCD 2024 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in SMC Global Securities NCD 2024 by providing NCD recommendations i.e. subscribe, avoid and neutral.
Add a public comment...
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|
|
