SMC Global Securities approves ₹750 crore NCD issue with green shoe option
SMC Global Securities Limited announced a public issue of secured, rated, listed, redeemable NCDs with a base size of ₹750 crore and an oversubscription option of ₹750 crore, totaling up to ₹1,500 crore. The NCDs have a face value of ₹1,000 each. This follows Q1FY27 results where net profit rose 22.7% YoY to ₹367.36 lakh, driven by higher fees and commission income.
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SMC Global Securities Limited Board of Directors approved a public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) on July 26, 2026. The base issue size is ₹750 crore (₹7,500 lakhs), with an oversubscription option (green shoe) of ₹750 crore, potentially raising up to ₹1,500 crore (₹15,000 lakhs) in aggregate. Each NCD has a face value of ₹1,000. The company plans to issue up to 1,500,000 NCDs under this scheme. This capital raising follows the announcement of consolidated net profit after tax of ₹367.36 lakh for Q1FY27, up 22.7% year-on-year.
The proposal was approved pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that further details regarding the issue will be provided as decided by the Non-Convertible Debenture Committee, in compliance with SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Suman Kumar, EVP (Corporate Affairs & Legal), Company Secretary & General Counsel, signed the disclosure.
Financial Performance Context
The decision to raise debt capital comes amidst strong operational performance in Q1FY27. Consolidated revenue from operations rose 21.2% YoY to ₹515.08 crore. Net profit after tax increased to ₹367.36 lakh from ₹299.50 lakh in Q1FY26. The growth was supported by a 26.5% surge in fees and commission income to ₹310.65 crore and a 37.5% rise in net gain on proprietary trading to ₹85.53 crore.
| Particulars | Q1FY27 (₹ in Lakhs) | Q1FY26 (₹ in Lakhs) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 51,508.02 | 42,493.08 | 21.2% |
| Total Expenses | 46,902.25 | 38,726.77 | 21.1% |
| Profit Before Tax | 4,658.05 | 3,835.62 | 21.5% |
| Net Profit After Tax | 3,673.55 | 2,995.01 | 22.7% |
Segment and Compliance Details
On a standalone basis, net profit after tax was ₹251.19 lakh, up 17.6% YoY. Standalone revenue grew 26.6% to ₹273.43 crore. The Broking, Distribution and Trading segment saw revenue rise 15.0% to ₹316.30 crore. Insurance Broking Services revenue surged 44.4% to ₹167.27 crore, though segment results declined 32.3% to ₹16.38 crore.
Statutory auditors P.C. Bindal & Co. issued a limited review report on the financial statements. The company confirmed compliance with covenants under its Debenture Trust Deeds as of June 30, 2026. The security cover for outstanding NCDs is maintained at 110% or higher, backed by pari-passu charges on trade receivables and margin trading facility receivables. The consolidated debt-equity ratio stands at 1.52 times, slightly down from 1.53 times at the end of FY26.
Historical Stock Returns for SMC Global Securities
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.09% | -7.39% | +2.18% | +5.08% | -0.33% | +58.86% |
How will the proceeds from the ₹1,500 crore NCD issue be allocated between debt repayment and capital expenditure, and what is the expected impact on SMC Global's net interest cost?
Given the 32.3% decline in segment results for Insurance Broking Services despite revenue growth, what strategic adjustments are anticipated to improve profitability in this division?
Will the issuance of secured NCDs alter the company's current debt-equity ratio of 1.52x, and how does this leverage level compare to peer benchmarks in the securities brokerage sector?
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