SMC Global Securities NCD – July-2024 Issue

SMC Global Securities is coming up with secured NCD bonds now. These bonds opened for subscription today. SMC Global Securities is a leading NBFC company in India. The NCD interest rates for SMC Global Securities NCD are up to 10.4% and yield is up to 10.4%. These NCDs are offered for 24 months to 60 months tenure. These interests are paid either monthly, annual or cumulative. Should you invest in SMC Global Securities NCD issue in July, 2024?

About SMC Global Securities Limited
Incorporated in 1994, SMC Global Securities Limited offers diversified financial services.
Company offers a wide range of services including brokerage services, portfolio management services, investment banking, asset management, distribution of financial products, financing, insurance broking services, real estate broking services, clearing and depository services, fixed income securities, financial, mortgage and credit advisory services.

As of end of March, 2024, it had 188 branches, including an international branch in Dubai and 2,327 registered authorised persons in 437 cities across India.

SMC Global Securities NCD – July-2024 Issue Details

Subscription opening Date
19-Jul-24

Subscription closure Date
01-Aug-24

Issuing Security Name
SMC Global Securities Limited

Security Type
Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)

Issue Size (Base)
Rs 75 Crores

Issue Size (Option to retain over subscription)
Rs 75 Crores

Total issue size
Rs 150 Crores

Issue price
Rs 1,000 per bond

Face value
Rs 1,000 per bond

Series
Series I to VI

Minimum Lot size
10 bonds and 1 bond there after

Tenure
24, 36, and 60 Months

Interest Payment frequency
Monthly, Annual and Cumulative

Listing on
Within 6 working days on BSE

Lead Manager
Corporate Professionals Capital Private Ltd

Debenture Trustee/s
Idbi Trusteeship Services Ltd.

Registrar to the issue
Link Intime India Private Ltd

SMC Global Securities NCD – July-2024 Interest rates

Options
I
II
III
IV
V
VI

Frequency of Interest Payment
Annual
Cumulative
Annual
Cumulative
Monthly
Annual

Tenure (Months)
24
24
36
36
60
60

Coupon (% per Annum)
10.00%
NA
10.20%
NA
9.94%
10.40%

Effective Yield (% per Annum)
10.00%
10.00%
10.20%
10.20%
10.40%
10.40%

Amount on Maturity (In Rs.)
1,000.00
1,210.00
1,000.00
1,338.27
1,000.00
1,000.00

What are the credit ratings of SMC Global Securities NCD – July-2024?
These NCDs have been rated as A/Stable by CRISIL Limited and ICRA A/Stable by ICRA Limited which indicate that instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry a low credit risk.
How is the company doing in terms of profits?
Here are the details of the consolidated profits of the company.
Year ending Mar-2022 – Rs 174.57 Crores
Year ending Mar-2023 – Rs 120.39 Crores
Year ending Mar-2024 – Rs 188.27 Crores
Why Invest in SMC Global Securities NCD – July-2024?

These SMC Global NCDs offer attractive interest rates where investors can get interest up to 10.4% per annum and yield up to 10.4%.
SMC Global Securities generate consistent margins. This means that the company has ability to pay interest on time to its NCD holders without any delay.
It issues secured NCDs. These NCDs are safe compared to any other unsecured NCDs. In case a company gets wind-up/shut down for some reason, secured NCD investors would get preference in repayment of capital along with interest as those backed up by assets of the company. Hence, it is safe to invest in such secured NCD options.
Company has a credit rating of A/Stable from CRISIL and ICRA. Such ratings are considered to have low credit risk.

Why not to Invest in SMC Global Securities NCD – July-2024?

Company is subject to extensive statutory and regulatory requirements and supervision and operate in a highly regulated environment which is subject to change. Any existing or new laws or regulations or government policies affecting the sector in which it operates can adversely affect its business.
Company, Directors, Promoters and Subsidiaries are involved in certain legal and other proceedings. Any adverse outcome in such proceedings can have an adverse effect on its business
Operation of its businesses is highly dependent on IT and any risks associated with it can have impact on the business.
Company had negative cash flow from operations, investing and financing activities. Such negative cash flow can adversely impact its business.
In the past there has been a delay in repayment of capital and interest on the NCDs from several NBFC companies.
Refer prospectus for complete risk factors indicated in the SMC Global Securities NCD July-24 Prospectus.

How to invest in these NCDs?
This issue is available in only in demat form. You can apply online or through any of the broker website where you are maintaining a demat account. Application forms can be downloaded on the lead manager web site. For more information on this, you can refer prospectus.
You may like to check Kostamattam Finance Jul-24 NCD issue Details too.
Should you invest in SMC Global Securities NCD July-2024 issue?

These NCDs offer high interest rates up to 10.4% and yield works out to 10.4%. Company has a good credit rating of A/Stable from CRISL Ratings and ICRA Ratings.
On other hand, some of the small finance banks are offering up to 9% interest rates which are covered under deposit insurance too up to Rs 5 lacs. Investors might think is it worth to invest in such NCDs for some extra interest rates or stick to bank FDs.

Investors who understand both pros and cons indicated above and willing to take the risks can invest in such NCDs.

Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)