SMC Global Securities Limited , a prominent player in India's financial services sector, has reported a decline in its second-quarter profits while simultaneously announcing strategic moves to expand its service offerings.

Q2 Financial Performance

For the quarter ended September 30, SMC Global Securities reported:

The company experienced a significant year-over-year decline in profitability, with net profit dropping by more than half. Revenue saw a marginal decrease, while EBITDA and EBITDA margin both contracted substantially.

Strategic Charter Amendment

In a move to align with evolving market trends, SMC Global Securities has amended its memorandum object clauses to include:

1. Technology-enabled financial services
2. SEBI-approved custodian business

This strategic shift is aimed at:

• Enhancing the company's integrated capital market infrastructure
• Ensuring regulatory compliance
• Fostering growth in digital and institutional segments

Debt Issuance

Concurrent with these developments, SMC Global Securities has successfully completed a public issue of non-convertible debentures (NCDs):

• Total allotment: 13,38,586 NCDs
• Face value: ₹1,000 per NCD
• Total amount raised: ₹133.86 crore
• Purpose: The funds are likely to support the company's expansion into new service areas

The NCDs offer various interest payment options, including annual, cumulative, and monthly schedules, with tenures ranging from 24 to 60 months and interest rates between 9.75% and 10.25% per annum.

Market Implications

The company's strategic amendments and debt issuance suggest a proactive approach to navigating the challenging market conditions reflected in its Q2 results. By expanding into technology-enabled services and strengthening its capital base, SMC Global Securities appears to be positioning itself for future growth opportunities in the evolving financial services landscape.

Investors and market watchers will likely keep a close eye on how effectively the company leverages these new capabilities to improve its financial performance in the coming quarters.

As the financial services sector continues to undergo digital transformation, SMC Global's moves to integrate technology-enabled services could be crucial in maintaining its competitive edge and potentially reversing the recent profit decline.

SMC Global Securities Limited , a prominent player in the Indian financial services sector, has successfully completed the allotment of non-convertible debentures (NCDs) worth Rs. 1,338.59 crore. The company made this announcement on October 30, 2025, marking a significant move in its capital raising efforts.

Key Details of the NCD Allotment

• Total NCDs Allotted: 13,38,586
• Face Value: Rs. 1,000 per NCD
• Total Issue Size: Rs. 1,338.59 crore
• Base Issue Size: Rs. 750 crore
• Green Shoe Option: Additional Rs. 750 crore (fully exercised)

NCD Series and Terms

SMC Global Securities has offered the NCDs across six series with varying tenors and interest rates:

Security and Listing

The NCDs are secured by a pari passu charge over the company's trade receivables and margin trading facility (MTF), maintaining a security cover of at least 110% of the outstanding principal amounts. These debentures are set to be listed on the BSE Limited, enhancing their liquidity and tradability.

Investor Categories

The allotment data reveals a diverse investor base:

• Category II (Corporates): 29 applications for 4,86,165 NCDs
• Category III (High Net-worth Individuals): 72 applications for 1,68,782 NCDs
• Category IV (Retail Individual Investors): 5,184 applications for 6,83,639 NCDs

Notably, there were no allotments in Category I, which typically includes Institutional Investors.

Significance of the Issue

This successful NCD issue demonstrates SMC Global Securities' strong market position and investor confidence. The funds raised are likely to bolster the company's capital base, potentially supporting its growth initiatives and strengthening its financial position in the competitive financial services landscape.

Conclusion

The oversubscription and full exercise of the green shoe option in this NCD issue underscore the robust demand for SMC Global Securities' debt instruments. As the financial services sector continues to evolve, such capital-raising efforts may play a crucial role in funding expansion plans and maintaining competitive edge in the market.