Prospectus for SMC Global Securities Limited, dated July 11, 2024. Here are the key points from the report that may help you evaluate whether investing in SMC Global Securities Limited's Non-Convertible Debentures (NCDs) is a sound decision:
Investment Highlights:
Company Overview:
SMC Global Securities Limited was incorporated in 1994 and is a prominent player in financial services, including stockbroking, wealth management, and related services. The company operates through various subsidiaries and joint ventures(1721024499358).
Issue Size:
The company is offering secured, rated, listed, redeemable NCDs of a face value of ₹1,000 each, with a base issue size of ₹7,500 lakhs, and a Green Shoe option to retain oversubscription up to ₹7,500 lakhs, making the total issue size up to ₹15,000 lakhs(1721024499358).
Credit Rating:
The NCDs have been rated 'CRISIL A/Stable' by CRISIL Ratings Limited and '[ICRA] A/Stable' by ICRA Limited, indicating an adequate degree of safety regarding timely servicing of financial obligations and carrying low credit risk(1721024499358).
Coupon Rates and Tenor:
The coupon rates, frequency of coupon payments, and redemption details are provided in the terms of the issue, which can vary based on the option selected by the investor(1721024499358).
Risk Factors:
As with all investments, these NCDs carry certain risks, including market risks, regulatory changes, and performance of financial markets(1721024499358).
Promoters and Management:
The promoters include Subhash Chand Aggarwal, Mahesh C Gupta, Sushma Gupta, and Damodar Krishan Aggarwal(1721024499358).
The management team is experienced in financial markets, which may add stability to the company's operations.
Conclusion:
Credit Rating: The A/Stable rating from CRISIL and ICRA suggests that the NCDs are considered relatively safe, with low credit risk.
Industry and Market Position: SMC Global is a well-established name in the financial services industry, providing a wide range of services, which adds to its business stability.
Risks: Investors should be aware of the risks outlined in the report, such as market volatility, regulatory compliance, and dependence on financial market performance.
Investing in these NCDs could provide a steady return, given the company's track record and ratings. However, make sure to assess whether the risks associated align with your investment profile.
