SMC Global Securities Limited- An Analysis of Bond Public Issue
SMC Global Securities Limited is issuing Secured, Rated, Listed, Redeemable Non-Convertible Debentures. The issue is open for subscription from July 19, 2024, and is closing on August 01, 2024. It holds a credit rating of A/Stable by CRISIL Ratings Limited and A/Stable by ICRA Limited. This blog delves into the company’s background, financial performance, and current issue. Below are the details of the issue.
Issue Highlights
Issuer Name
SMC Global Securities Limited
Nature of Instrument
Secured Rated Listed Redeemable Non-Convertible Debentures
Rating
A/ Stable by CRISIL Ratings Ltd. and A/Stable by ICRA Ltd.
Seniority
Senior Secured
Face Value
Rs. 1,000 per NCD
Base Issue Size
Rs.75 crores
Option to retain oversubscription
Rs. 75 crores
Coupon
Up to 10.40%
Tenor
24/36/60 months
Issue Date
July 19, 2024, to August 01, 2024
Minimum Investment
Rs. 10,000 only
Specific Terms of the NCD Public Issue across different series
Specific Terms of the NCD
Company Profile
SMC Global Securities Limited was established in 1994 having a diversified financial services business model with a presence in brokerage services, portfolio management services, investment banking, wealth management, distribution of financial products, financing (NBFC), real estate brokerage, insurance broking, clearing and depository services, mortgage and loan advisory services, and fixed income securities.
The equity shares of the Company are listed and traded on the NSE and BSE.
As of March 31, 2024, the company caters to its broking clients through a network of 188 branches including one international branch in Dubai and 2,327 registered Authorised Persons spanning over 437 cities across India.
The company’s products and services can be classified as follows:
Broking, distribution, and trading
Insurance broking
Financing (NBFC)
Key Operational and Financial Parameters (standalone basis):
(₹ in lakhs)
Particulars
FY 2023-24
FY 2022-23
FY 2021-22
Networth
88,380.45
76,800.25
79,323.26
Cash and Cash Equivalents
5,317.54
2,059.29
5,697.88
Profit after tax for the year
14,102.56
9,337.23
14,461.03
Interest Income
20,767.17
13,821.53
10,963.90
Competitive Strengths
The company’s growth and expansion have been propelled by several key strengths, some of which are mentioned below:
Broking house with Pan India presence.
The company is a full-service broking house in India spanning across 437 cities and towns. Through its online and digital platforms, it serves a large population of clients across India.
A reputed and well-established brand.
The expertise that the company has in its field and the individual solutions that the company provides to its customers have gained customer loyalty, retainer business, and customer referrals.
Steady financial performance.
SMC’s total consolidated income and net profit increased from ₹1,21,565.46 Lakhs and ₹12,039.62 Lakhs in Fiscal 2023 to ₹1,64,504.18 Lakhs and ₹18,827.65 Lakhs in Fiscal 2024, respectively, representing an increase of 35.32% and 56.38% respectively. As of Fiscal 2024, its return on net worth was 15.96%.
Wide range of corporate relationships.
For years, SMC has built relationships with corporate clients in different segments of its business.
Source: Information Memorandum
Investor Categories
The investor categories in a bond public issue are referred to as the various segments or types of investors who are eligible to take part in the offering. The issuer allocates the ratio as per the guidelines set by regulatory bodies such as SEBI for distributing the existing bonds among the various investor categories. Below is the allocation ratio for the SMC Global Securities Limited Public Issue across these categories.
Category I- Institutional Portion- 10% of the overall issue size- Public Financial Institutions, Insurance companies, Scheduled Banks, Provident Funds, AIFs, etc.
Category II– Non-institutional Investors- 25% of the overall issue size- Companies, Co-operative Banks, Trusts, Partnership Firms, Association of Persons, etc.
Category III– High Net-worth Individual Investors- 25% of the overall issue size- Resident Indian individuals or Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10,00,000 across all options of NCDs in the Issue.
Category IV– Retail- 40% of the overall issue size- Resident Indian Individuals or Hindu Undivided Families through Karta applying for an amount aggregating up to and including Rs. 10,00,000.
How to Apply through TheFixedIncome.com?
Information Memorandum:
An Information Memorandum (IM) can be defined as a comprehensive document providing investors with in-depth information about the bond public issue. It provides detailed insights into the issuer’s business, financial background, management team, details of offerings, associated investment risks, and fund allocation from the issue, alongside regulatory and legal disclosures.
The link to the Information Memorandum of bond public issue of SMC Global Securities Limited is given below:
https://www.thefixedincome.com/storage/bondprimary_imfiles/1721132554SMC.pdf
Conclusion
Wrapping up, the bond public issue by SMC Global Securities Limited is an attractive opportunity for those investors seeking to invest in Secured Rated Listed Redeemable Non-Convertible Debentures. Investors can participate in this offering and reap the returns associated with the issue. However, investors should go through the Information Memorandum (IM) thoroughly and take into account their risk appetite and investment objectives before making a decision.
Disclaimer: This article is based on publicly available information and other sources believed to be reliable. The information provided in this article is intended for general, educational, and awareness purposes only and should not be considered a comprehensive disclosure of every material fact. It should not be interpreted as investment advice for any individual or entity. The article makes no guarantees regarding the completeness or accuracy of the information and disclaims all liabilities, losses, and damages arising from the use of this information. Investments in the debt market are subject to market risk, kindly read all the documents carefully.
