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Vivriti Capital Limited NCD
Piyush Prajapati 10 Aug, 2023

Exploring Investment Prospects : Vivriti NCDs' Public Secured NCDs Issue

Vivriti Capital Limited (VCL) is a well-known financial company in India that operates in a way similar to traditional banks, even though it isn't one. They're officially registered with the Reserve Bank of India (RBI), which is like the financial authority in the country. Since their start in June 2017, VIVRITI CAPITAL LIMITED has become an important player in India's financial world.

Now, they're doing something interesting. They're offering something called "Non-Convertible Debentures" (NCDs). These are like special certificates that they're giving out to people. They're offering a bunch of these certificates to the public, and all of them together will have a total value of ₹25,000 lakh (which is a large amount of money!). However, if many people are interested in these certificates, they're prepared to offer even more, up to a total of ₹50,000 lakh.

Here are some important things to know: each of these certificates is valued at ₹1,000, and you can buy them in groups of 10 or more. A company called JM Financial Limited is assisting VIVRITI CAPITAL LIMITED with all of this, and there are other organizations involved too, ensuring that everything is fair and trustworthy.

You'll be able to buy these certificates starting from August 18, 2023, and the opportunity will be open until August 31, 2023. Once you own these certificates, they'll be listed on the BSE stock exchange, which is where people trade these kinds of financial instruments.

All in all, VIVRITI CAPITAL LIMITED is giving people the chance to be part of their financial plans by offering these special certificates. They're working with trusted partners to make sure that everything goes smoothly. The total value of these certificates being offered is ₹500 crore.

Background and Growth :

Founded by Mr. Vineet Sukumar and Mr. Gaurav Kumar in June 2017, VIVRITI CAPITAL LIMITED started as a private limited company and later transformed into a public limited company on June 9th, 2023. The company has garnered significant support from esteemed institutional investors such as Creation Investments, Lightrock, and TVS Capital. These investors not only injected capital but also provided invaluable strategic guidance, leveraging their extensive experience in the financial services sector.

Lending Portfolio :

VIVRITI CAPITAL LIMITED serves mid-corporates spanning diverse sectors like healthcare, pharma, logistics, and retail. Its lending portfolio is versatile, including offerings like term loans, working capital demand loans, collaborative lending with financial partners, and the securitization of receivables. The loan sizes range from ₹0.10 lakh to ₹8,000.00 lakh, with an average of under ₹350.00 lakh. Loan durations vary from 1 month to 48 months, tailored to match borrower profiles and collateral.

Financial Performance :

As of March 31st, 2023, VIVRITI CAPITAL LIMITED boasts a standalone AUM (Assets Under Management) of ₹5,83,580.01 lakh. Bolstered by a robust Net Worth of ₹1,56,474.55 lakh and borrowings of ₹4,76,646.43 lakh, the company maintains a favorable Debt-to-Equity ratio of 3.05x, reflecting a well-balanced blend of equity and debt. Notably, VIVRITI CAPITAL LIMITED reported Standalone Profit After Tax (PAT) figures of ₹12,929.75 lakh, ₹6,736.98 lakh, and ₹3,000.51 lakh for FY23, FY22, and FY21 respectively.

Steady Asset Quality :

VIVRITI CAPITAL LIMITED exhibits a resilient asset quality, showcasing minimal Net Non-Performing Assets (NPAs) percentages of 0.08%, 0.07%, and 0.00% for FY23, FY22, and FY21 correspondingly. This underscores the company's cautious lending practices and effective risk management strategies.

Upcoming Vivriti NCD Offering :

VIVRITI CAPITAL LIMITED is gearing up for a notable public issue featuring secured, rated, listed, redeemable, non-convertible debentures (NCDs). The upcoming issuance targets an aggregation of up to ₹50,000 lakh, with an option to retain oversubscription of ₹25,000 lakh. The credit ratings assigned by ICRA and CARE provide a stamp of stability and positivity, instilling confidence among potential investors considering the Vivriti NCD offering.

Issue Structure of Vivriti NCD

Specific Terms for Each Series of NCDs Series I Series II Series III Series IV Series V
Frequency of Interest Payment Monthly Annual Quarterly Monthly Annual
Tenor 18 Months 18 Months 24 Months 24 Months 24 Months
Coupon (% per annum) 9.57% 10% 9.65% 10.03% 10.50%
Effective Yield (% per annum) 9.98% 10.06% 9.98% 10.49% 10.48%
Redemption Amount (Rs. / NCD) on Maturity Rs. 1,000 Rs. 1,000 Staggered Redemption in eight(8) quarterly payments of 125 each, starting from 1st quarter** until maturity Rs. 1,000 Rs. 1,000
Maturity/Redemption Date 18 Months 18 Months 24 Months 24 Months 24 Months
Put/Call Option N.A. N.A. N.A. N.A. N.A.
Issuer

Vivriti Capital Limiteds

Instrument Secured Redeemable Non-Convertible Debentures (NCDs)
Issue Opens on 18th August, 2023
Issue Closes on 31st August, 2023
Issue Size Base Issue size of Rs. 250 Crore with a Green Shoe option of up to Rs. 250 Crore aggregating up to Rs. 500 Crore being the Issue size.
Issue Price / Face Value Rs. 1,000/- per NCD
Minimum Application Rs. 10,000/- (10 NCD) and in multiples of Rs. 1,000/- (1 NCD) thereafter.
Credit Rating A (Stable) by ICRA and A; +Ve by CARE
Registrar Integrated Registry Management Services Pvt Ltd
Listing Listing It is proposed that the NCDs be listed on BSE and NSE.
Category I - Institutional
Category Allocation 20%
Category Allocation 20%
Put/Call Option N.A.
Mode of Allotment Compulsorily in dematerialized form.
Allotment First Come First Serve Basis.
Depositories NSDL and CDSL

Key Financial Details

Particulars As of Jun'23 FY ended Mar'23 FY ended Mar'22 FY ended Mar'21
AUM (₹ lakh) NA 5,83,580.01 3,81,686.09 1,90,473.85
Net-Worth (₹ lakh) 1,62,237.82 1,56,474.55 1,19,614.66 79,714.17
Interest Income (₹ lakh) 19,837.88 59,927.01 32,344.09 20,124.26
Profit / (Loss) for the year (₹ lakh) 5,186.31 12,929.75 6,736.98 3,000.51
Net NPA (%) 0.15% 0.08% 0.07% 0.00%
CRAR (%) 26.26% 25.74% 29.57% 40.31%
Competitive Strengths:
  • 1. Strong Capitalization : VCL boasts robust capitalization, bolstered by substantial equity injections from private equity investors. This has led to a strong Capital to Risk-Weighted Assets Ratio (CRAR) and a favorable Debt-to-Equity ratio.
  • 2. Experienced Leadership : The company is helmed by a seasoned management team, led by Mr. Vineet Sukumar, who brings extensive experience in the financial sector to the table.
  • 3. Enhanced Profitability : VCL's prudent financial management is apparent through reduced credit costs and escalating profitability, with a notable uptick in Return on Total Assets.
  • 4. Diverse Funding Sources : VCL benefits from a well-rounded mix of lenders, encompassing a wide array of financial institutions and corporations, ensuring a stable funding source.
  • 5. Robust Risk Management : VCL has a comprehensive risk management framework, facilitating effective identification, measurement, and mitigation of various risks.
Conclusion :

Vivriti Capital Limited stands as a testament to effective financial management and strategic expansion within India's financial landscape. With a solid foundation, proficient management, and a proven track record, VCL is ideally positioned to sustain its upward trajectory and contribute significantly to the nation's economic advancement. Those seeking investment opportunities should consider the Vivriti Capital Limited NCD offering as a chance to partake in this flourishing journey.

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