Non-Convertible Debentures and long term loans has been reaffirmed/assigned at [ICRA]BBB with Stable outlook.
Short term bank facilities has also been reaffirmed to [ICRA]A2.
According to the Rationale, the ratings factor in Sakthi Finance Limited’s (SFL) experience in the retail financing business and its established franchise, which has evolved over the last six decades of its operations.
The ratings are, however, constrained by SFL’s geographically concentrated operations, the highly competitive business environment, and its subdued profitability indicators.
SFL is planning to raise about Rs. 100 crore through the public issuance of debentures (with a greenshoe option of an additional Rs. 100 crore) in May 2021, which is expected to support its liquidity position. The promoters are also expected to provide support, if required, by infusing liquidity or equity.
At around 10:37 AM, Sakthi Finance was trading at Rs14.10 per piece down at Rs0.40 or 2.76% on Senssex.