Dilip Davda : This is the frequent debt offer making company from the South. The company primarily, a gold loan company is again coming out with a debt offer of Rs 150 crore NCDs with a green shoe option of keeping 100% over subscription thus making the issue size of Rs. 300 crore. This is the fourth offer in last three years.
The issue is opening for subscription on September 15, 2014 and will close on or before October 8, 2014. The company is offering Secured and Un-secured Redeemable Non-Convertible Debentures of Rs 1000 each to raise Rs. 300 crore out of which 75% will be used for lending and the balance for general corpus fund.
This issue carries coupon rates varying from 10.50% to 12.13% and having a tenure ranging from 400 days to 75 months. The interest payment term is Monthly, Yearly and Cumulative. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and thereafter in multiple of 1 NCD. Investors can opt for demat or physical mode of this instrument, however, trading will take place in demat mode only.
On performance front, the company is showing declining trends in top lines.
Total income declined from Rs. 2662.60 crore for 2011-12 to Rs. 2117.93 crore for 2013-14 and net profit also declined from Rs. 591.46 crore to Rs. 226.01 crore for the said periods.
Issue is lead managed by ICICI Securities Ltd and A K Capital Services Ltd. Link Intime India Pvt Ltd is the registrar to the issue. IL & FS Trust Company Ltd is the debenture trustee. Post allotment, NCDs will be listed on BSE.