Sammaan Capital Limited, formerly known as Indiabulls Housing Finance Limited, has successfully raised ₹50 crore through the allotment of non-convertible debentures (NCDs) in a private placement. The company made this announcement in its latest filing with the stock exchanges.

Key Details of the NCD Issuance

Security and Listing

The NCDs are secured by a charge on the company's financial and non-financial assets, maintaining a minimum asset coverage of 1.1 times the principal amount and interest. These debentures will be listed on both the National Stock Exchange of India Limited (NSE) and BSE Limited.

Interest Payment Schedule

The first coupon payment is due on November 04, 2025, with subsequent quarterly payments until maturity. In case of any payment default, an additional interest of 2% per annum over the coupon rate will be charged for the defaulting period.

Financial Implications

This NCD issuance provides Sammaan Capital with a significant influx of funds, potentially strengthening its financial position and supporting its business operations. The 9.20% coupon rate reflects the current market conditions and the company's credit rating.

Investor Perspective

For investors, these NCDs offer a fixed income opportunity with quarterly payouts over a three-year period. The security provided by the asset coverage and the listing on major stock exchanges add to the attractiveness of these instruments.

Sammaan Capital's successful raising of funds through this NCD issuance demonstrates its ability to access debt markets and potentially indicates investor confidence in the company's financial health and future prospects.

As the financial landscape continues to evolve, such debt instruments play a crucial role in providing companies with the necessary capital for growth and operations while offering investors alternative investment options in the fixed-income space.

Sammaan Capital Limited (formerly known as Indiabulls Housing Finance Limited) has successfully completed the full redemption of its Unsecured Redeemable Non-Convertible Subordinated Debt (NCDs) worth ₹1,650 crore, showcasing the company's robust financial position and commitment to meeting its debt obligations.

Timely Redemption and Interest Payment

The company paid ₹165.00 crore in interest and fully redeemed the principal amount on maturity. The interest payment was made on August 1, with a record date of July 30, against a due date of August 3. The redemption was also completed ahead of schedule on August 1, leaving zero outstanding amount.

Details of the NCD

The redeemed NCDs, with ISIN INE148I08207, were issued on a private placement basis with a yearly interest frequency. This successful redemption demonstrates Sammaan Capital's ability to manage its debt effectively and maintain investor confidence.

Financial Implications

The timely redemption of such a significant amount indicates Sammaan Capital's strong cash flow management and liquidity position. It also reflects positively on the company's credit profile, potentially benefiting future fundraising efforts.

Additional Financial Activities

In addition to the NCD redemption, Sammaan Capital also made timely interest payments on its other debt instruments. The company paid interest on Secured Redeemable Non-Convertible Debentures issued through public offerings, further reinforcing its commitment to meeting financial obligations.

Corporate Developments

Sammaan Capital has also been active in corporate restructuring. The company is currently involved in a scheme of arrangement for the amalgamation of several group companies, including Sammaan Collection Agency Limited, Sammaan Sales Limited, and others, into Sammaan Capital Limited. This move is aimed at streamlining operations and potentially improving overall efficiency.

Conclusion

The successful redemption of the ₹1,650 crore NCDs, along with timely interest payments on other debt instruments, underscores Sammaan Capital's financial stability and commitment to its investors. As the company continues to navigate the dynamic financial services landscape, these actions are likely to bolster investor confidence and support its growth strategies.