Sammaan Capital, formerly known as Indiabulls Housing Finance, has successfully allotted secured, redeemable Non-Convertible Debentures (NCDs) worth ₹165.26 crore under its Tranche II issue. This allotment follows a recent trend of the company raising funds through NCD issuances. The NCDs carry a ‘AA/Stable’ rating from CRISIL and ICRA, indicating a high degree of safety regarding timely servicing of financial obligations.
This Tranche II issue was part of a larger fundraising plan with a base issue size of ₹100 crore and a greenshoe option of ₹200 crore, allowing for a potential total of ₹300 crore. The funds raised will likely be used to support the company’s lending activities and overall business operations. The issuance offers various investment options with tenures ranging from 24 to 120 months and coupon rates between 9.65% to 10.25% per annum.
Key Insights:
- Debt Financing: Sammaan Capital is actively utilizing debt markets to raise capital, potentially indicating a strategic focus on this avenue for funding growth.
- Credit Rating: The ‘AA/Stable’ rating provides confidence to investors regarding the company’s financial stability and ability to meet its debt obligations.
- Attractive Returns: The NCDs offer competitive interest rates, making them potentially appealing to investors seeking fixed-income opportunities.
Investment Implications:
- Fixed Income Opportunity: Investors looking for regular income and stable returns may find these NCDs attractive, especially given the credit rating.
- Diversification: Including these NCDs in a portfolio can enhance diversification and potentially reduce overall risk.
- Interest Rate Environment: Investors should consider the prevailing interest rate scenario and compare the offered rates with other fixed-income instruments before investing.
- Company Performance: It’s crucial to analyze Sammaan Capital’s financial performance and growth prospects to assess the long-term viability of the investment.
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