SMC Global Securities is currently issuing secured NCD bonds. These bonds have been opened for subscription today. SMC Global Securities is a leading NBFC company in India. SMC Global Securities NCDs offer NCD interest rates of up to 10.4% and yields of up to 10.4%. These NCDs are offered for tenors ranging from 24 to 60 months. These interests can be paid monthly, annually or cumulatively. Should you invest in the SMC Global Securities NCD issue in July 2024?
About SMC Global Securities Co., Ltd.
SMC Global Securities Limited was established in 1994 and offers a range of financial services.
The company offers a wide range of services including securities brokerage services, portfolio management services, investment banking, asset management, distribution of financial products, lending, insurance brokerage services, real estate brokerage services, settlement and depository services, bonds, finance, mortgage and credit advisory services.
As of the end of March 2024, it has 188 branches, including an international branch in Dubai, and 2,327 registered accredited practitioners in 437 cities across India.
SMC Global Securities NCD – July 2024 Issue Details
| Application start date | July 19, 2024 |
| Subscription End Date | August 1, 2024 |
| Name of Issuer | SMC Global Securities Co., Ltd. |
| Security Type | Secured Redeemable Non-Convertible Debentures (Secured NCDs) |
| Issue size (base) | 75 million rupees |
| Issue size (option to hold oversubscribed amounts) | 75 million rupees |
| Total Issue Amount | 150 crore |
| Issue price | 1,000 per bond. |
| Face value | 1,000 per bond. |
| series | Series I to VI |
| Minimum Lot Size | 10 bonds and then 1 bond |
| Tenure | 24, 36, 60 months |
| Interest payment frequency | Monthly, annual, cumulative |
| Published in | Within 6 business days on BSE |
| Lead Manager | Corporate Professional Capital Private Limited |
| Bond Trustee | Idbi Trusteeship Services Ltd. |
| The registrar in question | Link In Time India Private Limited |
SMC Global Securities NCD – July 2024 Interest Rates
| option | I | II | III. | IV | Five | VI |
|---|---|---|---|---|---|---|
| Frequency of interest payments | Annual | Cumulative | Annual | Cumulative | Monthly | Annual |
| Term of employment (months) | twenty four | twenty four | 36 | 36 | 60 | 60 |
| Coupon (annual interest rate) | 10.00% | N/A | 10.20% | N/A | 9.94% | 10.40% |
| Effective Yield (annual %) | 10.00% | 10.00% | 10.20% | 10.20% | 10.40% | 10.40% |
| Amount at maturity (Rupees) | 1,000.00 | 1,210.00 | 1,000.00 | 1,338.27 | 1,000.00 | 1,000.00 |
SMC Global Securities NCD – What is the July 2024 credit rating?
These NCDs are rated A/Stable by CRISIL Limited and ICRA A/Stable by ICRA Limited, indicating that instruments with this rating are considered to have adequate security with regard to timely performance of financial obligations.The credit risk of such instruments is low.
What is the company’s profit situation?
The breakdown of our consolidated profit is as follows:
FY ending March 2022 – Rs 1,745.7 million
FY ending March 2023 – Rs 1,239 crore
FY ending March 2024 – INR 1,882.7 million
Reasons to invest in SMC Global Securities NCD (July 2024)
- These SMC Global NCDs offer attractive interest rates, allowing investors to earn up to 10.4% interest and a yield of up to 10.4% per annum.
- SMC Global Securities generates stable margins, which means the company has the ability to pay interest to NCD holders on time and without delay.
- The company issues secured NCDs. These NCDs are safer as compared to other unsecured NCDs. In case the company gets dissolved/closed due to any reason, investors in secured NCDs get priority in repayment of capital along with interest backed by the assets of the company. Hence, it is safe to invest in such secured NCD options.
- The Company has A/Stable credit ratings from CRISIL and ICRA.Such ratings are considered to have low credit risk.
Why not invest in SMC Global Securities NCD – July 2024 issue?
- We are subject to extensive statutory and regulatory requirements and oversight and operate in a highly regulated environment that is subject to change. Existing or new laws, regulations or government policies affecting the sectors in which we operate could adversely affect our business.
- The Company, its directors, promoters and subsidiaries are involved in certain legal and other proceedings. Adverse outcomes in such proceedings could have a negative effect on its business.
- Business operations are highly dependent on IT, and any risk related to IT can affect the business.
- We have generated negative cash flows from operating, investing and financing activities, and such negative cash flows may have an adverse effect on our business.
- In the past, there have been delays in repayment of principal and interest on NCDs from some NBFC companies.
- Please refer to the prospectus for further details of the risk factors listed. SMC Global Securities NCD July 24th Prospectus.
How should one invest in these NCDs?
This issue is available only in demat form. You can apply online or through the website of the broker where you hold your demat account. The application form can be downloaded from the lead manager’s website. Please refer to the prospectus for more details.
Please check it Kostamattam Finance July 24 NCD issuance details Too much.
Should you invest in SMC Global Securities NCD July 2024 issue?
- These NCDs offer high interest rates of up to 10.4% resulting in a yield of 10.4%.The Company has a good credit rating of A/Stable from CRISL Ratings and ICRA Ratings.
- Meanwhile, some small finance banks are offering deposit insurance up to Rs 5 lakh and interest rates of up to 9%. Investors may wonder whether it is worth investing in such NCDs to earn additional interest or stick to fixed deposits with banks.
Investors who understand both the above pros and cons and are willing to take the risk can invest in such NCDs.
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.
