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 thirteen series: coupon ranges from 8.42% to 9.95% 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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Issue analysis

Pros 

• Attractive Yields
  Interest rates go up to 12.5% p.a., among the highest in the secured NCD category — ideal for yield-hunting investors.
• Social Impact Investing
  Investing supports a microfinance business model promoting women empowerment and rural income generation, aligning with ESG preferences.
• Secured NCDs
  The NCDs are secured by receivables with exclusive charge, enhancing investor safety in case of default.
• Flexible Tenure Options
  Options include 18, 24, 36, 60, and 75-month tenures with various payout modes (annual, monthly, cumulative).

Cons

• Lower Credit Rating
  CRISIL has rated the instrument ‘BBB/Stable’, indicating moderate safety and higher risk compared to AA or AAA-rated peers .
  
• Low Liquidity on Exchange
  Small-issue NCDs from MFIs often witness thin trading volumes, limiting secondary market exit options.
  
• Higher Risk Business Segment
  The MFI sector is vulnerable to local political disruptions, regulatory caps on interest, and borrower repayment capacity issues.
  
• Limited Brand Recognition
  As a smaller player in the microfinance space, Sammaan doesn’t enjoy the same brand recall or sponsor strength as larger NBFCs.

Liquidity Position

• Cash and equivalents stood at ₹48.4 crore as of March 31, 2025.
• Has unutilized sanctions of ₹45 crore from banks/FIs, providing buffer to meet near-term obligations.
• Positive cumulative mismatches in all time buckets (as per ALM profile), indicating comfortable short-term liquidity .

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.

Ratio Analysis

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About Sammaan Capital Limited

Sammaan Capital Limited is a South India-based NBFC-MFI (Non-Banking Financial Company – Microfinance Institution) that primarily focuses on extending income-generating loans to underserved rural women. Founded in 2015 and headquartered in Chennai, the company operates with a strong social impact mission—empowering low-income households through financial inclusion.

As of March 31, 2025, the company has built a diversified presence across 6 states with 177 branches, managing an Assets Under Management (AUM) of approximately ₹597 crore. Sammaan’s business model is centered on group-based microloans ranging between ₹10,000–₹60,000, typically extended for 12–24 months, which has helped it maintain robust asset quality with a Gross NPA of just 0.36% and Net NPA at 0.11%.

Backed by a strong Capital Adequacy Ratio (CAR) of 27.59%, and a FY2025 net profit of ₹9.76 crore, Sammaan Capital has emerged as a fast-growing and financially prudent player in the microfinance ecosystem. The company aims to further scale operations while maintaining its focus on disciplined underwriting and social impact.

Strengths

• Focused Business Model
  Sammaan Capital is a registered NBFC-MFI (Non-Banking Financial Company – Micro Finance Institution) focused on extending income-generating microloans primarily to rural women, ensuring strong social impact and demand.
  
• Improved Profitability
  Reported a net profit of ₹9.76 crore in FY2025, up from ₹3.54 crore in FY2024 — a growth of over 175% YoY, driven by increased scale and improved asset quality .
  
• Strong Asset Quality
  Gross NPA stood at 0.36% and Net NPA at 0.11% as of March 31, 2025 — reflecting strong credit underwriting practices and recovery efficiency .
  
• High Capital Adequacy
  The Capital Adequacy Ratio (CAR) is robust at 27.59% as of March 2025, well above the regulatory minimum of 15% — offering good cushion for growth .
  
• Geographically Diversified Operations
  As of FY2025, Sammaan Capital operated across 6 states with 177 branches, helping mitigate regional concentration risks .

Weaknesses

• Small Scale of Operations
  AUM as of March 2025 was ₹597 crore — modest compared to larger MFIs, which may limit operational leverage and pricing power .
  
• Regional Concentration
  Despite multi-state operations, nearly 62% of the loan portfolio is concentrated in Tamil Nadu, posing geographic risk .
  
• Limited Vintage and Funding Base
  Incorporated in 2015, the company still has limited seasoning in credit cycles. Also, its access to diversified funding sources remains constrained compared to top-tier peers.
  
• Moderate Borrower Profile
  The MFI segment inherently involves lending to low-income, vulnerable borrower segments, which are more susceptible to external shocks (climatic, economic, political).

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Source- Tranche IV Prospectus July 8, 2025

Disclaimer- The information is published as on date 07/14/2025 based on information available on Tranche IV Prospectus July 8, 2025. 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