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

 

Bond overview 

Sammaan Capital Limited is issuing the Non-Convertible Debentures. These NCDs are AA/ rated with stable outlook by CRISIL & ICRA. The NCDs are being issued in twelve series: coupon ranges from 8.88% to 10.75% p.a. and different tenures of 24 months, 36 months, 60 months, 84 months, and 120 months. The NCDs are secured and redeemable in nature. 

Coupon rates and effective yield for each of the series 

Principal Redemption Schedule and Redemption Amounts

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 Sammaan Capital Limited NCD-IPO. 

Investment Process for Sammaan Capital 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, Net Worth and PAT (In crores)

Cash flow for last few 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.

Issue analysis

Pros 

• The yield offered is up to 10.75% which is much higher than many traditional fixed-income investments like FDs.
• The ratings of the company is  AA/Stable by CRISIL which is a higher level of rating.

Cons

• The company is prone to regulatory risk associated with RBI and other regulators as well.

Liquidity

Sammaan Capital Limited has a strong liquidity profile with unencumbered cash and liquid investments of 68.08 Crores as of 31st March,2024. The upcoming public issuance of NCDs in July 2024 is expected to further enhance its liquidity profile.

Ratio Analysis

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

About Sammaan Capital Limited

Sammaan Capital Limited ( Formerly known as Indiabulls Housing Finance Limited) is a non-deposit taking Investment and Credit  company registered with RBI. The company is headquartered in Delhi and running its operations from Mumbai. As a Prominent NBFC, the company offers Housing loans and loan against property to varied clients like self employed, salaried, corporates and MSMEs. Apart from that the company also offers Mortgage loans to real estate developers in India in the form of lease rentals and construction loans for residential premises. With increasing demand, the company has now shifted to asset light models like co-lending of loans in order to sell down its loan portfolio to lower ticket sizes as well. As on 31st March,2024 the loan book of the company was 46,000 Crores.

Key Highlights 

Strengths

• Strong network– As of June,2024 the company has a wide,strong and stable network of 215 branches across the country undertaking loan processing, appraisal and management of customer experience efficiently.
• Asset-Light Business Model-  The company has started giving loans in the co-lending space, tying up with banks, credit funds and other financial institutions to sell their loan portfolio.
• Experienced Management- The company is headed by Mr. Gagan Banga (MD and CEO) who has more than 16 years of experience in the NBFCs and Housing loans segment and is supported by seasoned professionals for the daily operations.
• Lower Net Non-Performing Asset Ratio- For the year ended 31st March, 2024 the company has a net NPA ratio of 1.83%, demonstrating exceptional asset management. This ratio constitutes its diverse loan portfolio, including housing loans, MSME and loan against property.

Weakness

• High Debt–  Sammaan Capital Limited has a considerable amount of debt, amounting to Rs 30,000 Crore ( Approx) as on 31st March, 2024.
• Intense Competition- Sammaan Capital Limited faces intense competition from other loan providers, including both established players and new entrants offering lucrative interest rates.

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Source – Tranche I Prospectus August 28, 2024

Disclaimer – The information is published as on date 09/04/2024 based on information available onTranche I Prospectus August 28, 2024. The information may be subject to change in case of change in terms of prospectus or any other reason as the case maybe. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and has no influence the investment/sale decisions of any investors