Satin Creditcare Network on Friday (6 January 2023) announced that its board has approved fund raising of Rs 25 crore by issuing non-convertible debentures (NCDs) on private placement basis.
In a regulatory filing, the NBFC said that the working committee of the board of directors of the company has considered and approved the issuance of 2,500 secured, rated, listed, redeemable, transferable, non-convertible debentures, having a face value of Rs 1,00,000 each, with an aggregate value of Rs 25 crore on private placement basis.
The coupon rate on the NCD is fixed at 12.3% per annum payable semi-annually until the maturity date. The tenure of the instrument is upto 48 months from the date of allotment.
The debentures are proposed to be allotted on 16 January 2023 and it will be redeemed on the date occurring on the expiry of 48 months from the deemed date of allotment (maturity date being 16 January 2027).
The company agrees to pay an additional interest rate of 2% (per annum above the coupon rate on the outstanding principal amount from the date of the occurrence of the payment default or event of default until such payment default or event of default is cured or the debentures are redeemed pursuant to such default, whichever is applicable. Satin Creditcare stated in the press release.
The debentures are proposed to be listed on BSE within three working days from the issue closing date.
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The NBFC said that the debentures will be redeemed at par by the firm by making the payment of the outstanding principal amounts in respect of the debentures on the final redemption date in accordance with the DTD.
Satin Creditcare Network is engaged primarily in providing micro finance services to women in the rural areas of India who are enrolled as members and organized as joint liability groups.
The company's consolidated net profit surged 422.4% to Rs 57.20 crore on 10.7% jump in total income of Rs 360.70 crore in Q2 FY23 over Q2 FY22.
Shares of Satin Creditcare Network declined 1.62% to Rs 158.05 on the BSE.
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