High Yield | CRISIL A/Stable Rated | Minimum Investment: 10k Only

 

Bond overview

SMC Global Securities  Limited is issuing the Non-Convertible Debentures. These NCDs are A/Stable rated by CRISIL. The NCDs are being issued in Six series: coupon ranges from 9.94% to 10.40% p.a. and different tenures of 24 months, 36 months and 60 months. The NCDs are secured and redeemable in nature. 

Coupon rates and effective yield for each of the series 

Allocation Ratio

The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI.  Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio for SMC Global Securities Limited NCD-IPO. 

Investment Process for SMC Global Securities Limited NCD IPO

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If the investment amount is less than & up to 10 lakhs, retail investors can apply for an IPO online.

If the investment amount is more than 10 Lakhs. 

Financial Overview

Snapshot stating the Revenue, Expenses, PAT (In crores)

Cash flow for last 5 years (In crores)

Cash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.

• • *Cash flow from operating activities reflects the amount a company generates through its product of services.
  • **Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.
  • ***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects the net flows of cash that are used to fund the company.

Ratio Analysis

Issue analysis

Pros 

• The ratings of the company is  CRISIL A/Stable ensuring more safe investments.
• The yield offered is up to 10.40% which is much higher than many traditional fixed-income investments like FDs.
• The company has adequate Interest Coverage Ratio in order to meet its interest Obligations on debt instruments.
• SMC Global maintains adequate capitalization with plans to reduce gearing below 6.0 times, ensuring controlled growth and improved financial stability.

Cons 

• The company is prone to regulatory risk associated with SEBI and other regulators as well.
• Despite recent improvements, SMC Global Securities profitability remains subdued with increasing operating costs.

Liquidity

SMC Global Securities Limited  has a strong liquidity profile with unencumbered cash and liquid investments of 53.17 Crores as of 31st March,2024.The upcoming public issuance of NCDs in July 2024 is expected to further enhance its liquidity profile.

To get better returns than Bank FDs, invest in NCD-IPOs online. 

About SMC Global Securities Limited 

Established in 1994, SMC Global Securities is a diversified financial services powerhouse offering a wide array of services including brokerage, portfolio management, investment banking, wealth management, and insurance broking. With a robust presence across 437 cities in India and an international branch in Dubai, SMC serves its clients through a vast network of 188 branches and 2,327 authorized personnel. The shares of the company are traded on both BSE and NSE having a market cap of more than 1500 crores.

SMC is a member of major intermediaries of the stock market like NSDL, CDSL, BSE, NSE, MCX,ICCL, NCCL  and NCDEX. They have also  started their operations in IFSC GIFT City in Gujarat recently. For the Financial Year 2023-24 they had reported a volume of more than 8,000 Crore on the Equity Cash market segment on their Platform. Mr Subhash Aggarwal has been serving as the Managing Director and Chairman of the company since 1994.

Strengths

• • Broking house with PAN India reach- Full time service broking house in India with a vast network of 188 branches, including one in Dubai, and 2,327 authorized personnels. The company has an active client base of 2 lakhs in Fiscal 2024.
  •  Offering a wide range of financial products under one roof– The company offers broking and commission generating products and services across various asset classes such as equity, commodities and currency, and other services such as depository services, clearing services, insurance broking, and the distribution of third-party financial products. 
  • Stable Top Management– The management of the company comprises experienced professionals which have more than 30 years of experience in the financial services industry, some of them are on the board since 1994.
  • Consistent Financial Performance- The company is showing consistent stellar performance, with its consolidated Income and net profit increasing by 35% and 56% respectively since last FY 2023. 

Weakness

• • Too Diversified- The company is highly diversified with too many financial products and services, this involves high operating costs and regulations as well.
  • Intense Competition- SMC Global faces intense competition from other financial service providers, including both established players and new entrants offering innovative solutions.

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Source- Prospectus July 11, 2024

Disclaimer- The information is published as on date 19/07/2024 based on information available on Prospectus July 11, 2024. The information may be subject to change in case of change in terms of prospectus or any other reason as the case may be. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and has no influence the investment/sale decisions of any investors