SMC Global Securities Limited offers up to 10.40% yield in maiden NCD issue worth up to 150 Crore
29/07/2024, New Delhi: SMC Global Securities announced its first ever public offering of secured, rated, listed, redeemable, non-convertible debentures (NCDs) amounting to Rs. 75 crore (“Base Issue Size”), with a green shoe option of up to Rs. 75 Crore, aggregating to Rs. 150 crore. The issue opened for subscription from Friday, 19 July 2024 and will close on Thursday, 1 August 2024 (with an option of early closure). The face value and the Issue Price of each NCD is Rs. 1,000/-. With a minimum investment of Rs 10,000/- (10 NCDs), the offering caters to a wide range of investors. The NCDs are secured and will be listed on BSE Limited.
The NCDs carry credit ratings of ‘CRISIL A/Stable’ and ‘[ICRA] (A Stable)’. These ratings indicate a low credit risk and a high degree of safety for timely payment. The NCDs are being issued in six series, carrying fixed coupons and having a tenure of 24 months, 36 months and 60 months, with monthly, annual and cumulative interest options. Investors can earn effective yields ranging from 9.94% p.a. to 10.40% p.a.
The funds raised through this issuance will be primarily used to meet the working capital requirements. A portion of the proceeds will also be allocated for general corporate purposes. Subhash Chand Aggarwal, Mahesh C Gupta, Sushma Gupta and Damodar Krishan Aggarwal are the promoters of the Company.
M/s. Corporate Professionals Capital Private Limited, SEBI Registered Category I Merchant Banker is the Book Running Lead Manager to the issue.
| Category of Investors | NCD Allocation Ratio | NCD’s Offered by Category |
| Category I – Institutional Investors | 10% | 75,000 |
| Category II – Non-Institutional Investors | 25% | 1,87,500 |
| Category III – High Networth Individual Investors | 25% | 1,87,500 |
| Category IV – Retail Individual Investors | 40% | 3,00,000 |
| TOTAL | 100% | 7.50.000 |
Minimum Lot size – Ten (10) NCDs
Market Lot – One (1) NCD
Payment Frequency – Monthly, Annual and Cumulative
About SMC
Established in 1994, SMC Global Securities has a diversified financial services business model with presence in brokerage services, portfolio management services, investment banking, wealth management, distribution of financial products, financing (NBFC), insurance broking, real estate brokerage, clearing and depository services, fixed income securities and financial, mortgage and loan advisory services. As of 31 March 2024, the Company serviced its clients through a network of 188 branches, including one international branch in Dubai and 2,327 registered authorised persons spread over 437 cities across India.
