Saman Capital NCD September 2024 – Overview
Sammaan Capital Limited (formerly Indiabulls Housing Finance Limited) has announced secured NCD bonds (Tranche I) which are currently accepting applications. Sammaan Capital Limited is a non-deposit taking Housing Finance Company (HFC) registered with the NHB. Sammaan Capital NCDs offer NCD interest rates up to 10.75%. These NCDs have tenors ranging from 24 to 120 months and interest is payable monthly, annually or at maturity. Should I invest? Saman Capital NCD September 2024 So what is the question? What are the risk factors to consider before investing in such high-risk NCDs? In this article, Sammaan Capital NCD September 2024 Review.
About Saman Capital Limited
The company was earlier known as Indiabulls Housing Finance Limited.
Established in 2005, Indiabulls Housing Finance Limited (IBHFL) is a housing finance company registered with National Housing Bank (NHB).
It offers Home Loans, LAP (primarily for Micro, Small and Medium Enterprises (MSMEs) and Small Businesses), Developer Loans and LRD.
As of March 31, 2024, IBHFL’s consolidated AUM stands at Rs 65,335 crore, comprising HL (72%), LAP (17%) and CC (11%).
The company has over 150 branches across major states in India, particularly Maharashtra, Delhi and Uttar Pradesh. Sameer Gehlaut, the former promoter, sold his majority stake in IBHFL in December 2021 and resigned from his board of directors in March 2022.
Saman Capital NCD September 2024 (Tranche I) – Issue Details
The details of the NCD issue are as follows:
| Application start date | September 6, 2014 |
| Subscription End Date | September 19, 2024 |
| Name of Issuer | Saman Capital Limited |
| Security Type | Secured Redeemable Non-Convertible Debentures (Secured NCDs) |
| Issue size (base) | 125 billion rupees |
| Issue size (option to hold oversubscribed amounts) | 125 billion rupees |
| Total Issue Amount | 250 crore |
| Issue price | 1,000 per bond. |
| Face value | 1,000 per bond. |
| series | Series I to XII |
| Minimum Lot Size | 10 bonds and then 1 bond |
| Tenure | 24, 36, 60, 84, 120 months |
| Interest payment frequency | Monthly, annual, cumulative |
| Published in | Within 6 business days on BSE/NSE |
| Lead Manager | Nuvama Wealth Management Limited Elara Capital (India) Private Limited Trust Investment Advisors Private Limited |
| Bond Trustee | IDBI Trust Services Ltd. |
Saman Capital NCD September 2024 – Interest Rates
According to Sammaan Capital NCD September 2024 Prospectus The interest rates for Sammaan Capital as filed with the BSE are as follows: Investors must note that in case of NCDs of a specific tenor, the principal amount is repaid in instalments. This is the biggest drawback of these NCDs. For more details, refer to the redemption schedule given below.
| series | I | II | III. | IV | Five | VI | Seven | Eight | Chapter 9 | X | XI | Chapter 12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of interest payments | Annual | Monthly | Accumulation | Annual | Monthly | Accumulation | Annual | Monthly | Annual | Monthly | Annual | Monthly |
| Term of employment (months) | twenty four | twenty four | twenty four | 36 | 36 | 36 | 60 | 60 | 84 | 84 | 120 | 120 |
| Coupon (annual interest rate) | 9.65% | 9.25% | N/A | 9.90% | 9.48% | N/A | 10.15% | 9.71% | 10.50% | 10.03% | 10.75% | 10.25% |
| Effective Yield (annual %) | 9.65% | 9.65% | 9.65% | 9.90% | 9.90% | 9.90% | 10.15% | 10.15% | 10.50% | 10.48% | 10.74% | 10.75% |
| Amount at maturity (Rupees) | 1,000.00 | 1,000.00 | 1,202.32 | 1,000.00 | 1,000.00 | 1,327.38 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 |
Redemption Schedule
Saman Capital NCD September 2024 – Credit Rating
These NCDs are rated CRISIL AA / Stable by CRISIL Ratings and ICRA AA Stable by ICRA. Instruments with this rating are considered to have the highest level of safety with regard to timely performance of financial obligations and have very low credit risk.
What is the company’s revenue and profit situation?
Our consolidated financial statements are detailed below.
| End of period | March 31, 2021 | March 31, 2022 | March 31, 2023 | March 31, 2024 |
|---|---|---|---|---|
| assets | 93,239.0 | 81,973.3 | 74,945.2 | 73,066.0 |
| Revenue | 10,030.1 | 8,993.9 | 8,725.8 | 8,624.0 |
| Profit after tax | 1,201.6 | 1,177.7 | 1,127.7 | 1,214.0 |
Reasons to invest Saman Capital NCD September 2024
- Sammaan Capital bonds offer attractive interest rates, allowing investors to earn up to 10.75% per annum.
- The company issues secured NCDs, which are safer as compared to unsecured NCDs. In case the company gets liquidated or closed down due to any reason, secured NCD investors get priority in repayment of capital and interest as these NCDs are backed by the assets of the company. Hence, investing in such secured NCD options is considered safe.
- The company has a good credit rating of AA/Stable from both CRISIL and ICRA Ratings.
- There are 12 flexible investment options available, allowing investors to choose the one that best suits their preferences.
Risk Factors Saman Capital NCD September 2024
- For Series VI and above, redemption of the NCD amount will be done in instalments and hence investors will not get a lump sum of principal at maturity.
- The financial performance of the company may be affected by fluctuations in interest rates for lending and investment operations and interest rates on borrowing from banks/financial institutions.
- Rising non-performing assets (NPAs) can have a negative impact on business.
- Please see the NCD prospectus for a comprehensive list of risk factors.
Sammaan Capital NCD September 2024 – Should You Invest or Avoid?
Despite the rise in fixed deposit rates offered by banks and NBFCs, Sammaan Capital’s NCDs continue to offer high interest rates and yields.These NCDs are rated AA stable by ICRA and CRISIL, which are considered to have good credit ratings.
However, it should be noted that such credit ratings are subject to change at any time.Investors should remember that NBFCs have earlier deferred payment of interest and repayment of investment amount to investors.Furthermore, some of the NCD series of this NCD issue provide for repayment of principal in instalments.
Investors can invest in such NCDs if they are willing to consider all these risk factors.
Suresh KP is the Founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and NISM Certified Research Analyst. He has been involved in analyzing financial markets for the last 20 years. He can be reached at suresh@myinvestmentideas.com.
