Sakthi Finance redeems Rs 64.497 crore of public NCD debt

Sakthi Finance Limited redeemed Rs 64.497 crore of public non-convertible debenture principal during the quarter ended 30 September 2026 and raised Rs 17.5265 crore through privately placed preference shares. The two NCD redemptions carried Rs 13.0563 crore of disclosed interest, net of tax deducted at source, and were described as timely.

Which public NCDs did Sakthi Finance redeem in the September 2026 quarter?

Sakthi Finance redeemed two public-issue NCD option sets totalling Rs 64.497 crore of principal in the quarter ended 30 September 2026. Options I and II under a prospectus dated 13 June 2024 accounted for Rs 16.9023 crore, while Options VII and VIII under a prospectus dated 25 June 2021 accounted for Rs 47.5947 crore.

The 2021 prospectus options represented the larger repayment, exceeding the Rs 16.9023 crore redeemed under the 2024 prospectus by Rs 30.6924 crore. Sakthi Finance described both repayments as timely and compliant with the Listing Regulations, but did not state the individual redemption dates within the quarter, coupon rates or number of NCDs redeemed.

The NCD structures differed across the two prospectuses. Sakthi Finance identified Options I and II as rated, listed, secured and redeemable NCDs, whereas Options VII and VIII were rated, listed, unsecured and redeemable NCDs. Both option sets were public issues, so the Rs 64.497 crore total covers maturities under two separate prospectuses rather than a single issue.

How much interest did Sakthi Finance pay with the NCD redemptions?

Sakthi Finance disclosed Rs 13.0563 crore of interest, net of tax deducted at source, alongside the Rs 64.497 crore principal redeemed in the quarter ended 30 September 2026. Interest on Options I and II was Rs 1.5368 crore, net of Rs 5.08 lakh of tax deducted at source, while Options VII and VIII carried Rs 11.5195 crore, net of Rs 32.28 lakh.

The principal and interest figures are separately stated in the disclosure. Therefore, the Rs 64.497 crore headline figure is principal only, rather than a combined redemption outgo. Sakthi Finance did not provide gross interest before tax deducted at source, the coupon for either option set or a financing cash-flow reconciliation for these payments.

The 2021 prospectus options accounted for Rs 11.5195 crore, or most of the Rs 13.0563 crore interest disclosed with the quarter's maturities. Their interest amount was Rs 9.9827 crore higher than the Rs 1.5368 crore stated for the 2024 prospectus options. This difference compares disclosed payment amounts and does not establish the relative coupon or yield of the two NCD issues.

How did Sakthi Finance raise Rs 17.5265 crore in the quarter?

Sakthi Finance raised Rs 17.5265 crore through a private placement of unlisted, redeemable, cumulative preference shares during the quarter ended 30 September 2026. The company said the placement was made through private-placement offer-cum-application letters dated 26 August 2026 and 28 September 2026.

Sakthi Finance said the Rs 17.5265 crore raised was used towards the objects stated in those offer letters. The filing does not disclose the preference dividend rate, tenure, number of shares issued, investor identities or the specific uses identified in the letters. Those details cannot be established from the quarter-ended 30 September 2026 announcement.

The preference-share proceeds were Rs 46.9705 crore below the Rs 64.497 crore public NCD principal redeemed in the same quarter. The comparison identifies the scale of the two disclosed transactions but does not show a net change in total funding, since the filing also refers to debt securities, other borrowings, deposits and subordinated liabilities without linking their movements to these events.

What security cover did Sakthi Finance report for secured NCDs?

Sakthi Finance reported security cover of 1.10 times for its NCDs as at 30 September 2026. Its rated, secured, redeemable NCDs are backed by hypothecation charges on specified loan receivables, with cover of 100% or 110% for outstanding public-issue or private-placement principal and accrued interest, subject to the relevant issue terms and debenture trust deed.

The 1.10-times disclosure concerns Sakthi Finance's secured NCDs and does not apply to the unsecured Options VII and VIII redeemed under the 25 June 2021 prospectus. The filing does not provide the value of the charged loan-receivables pool, a security-cover calculation for each NCD series or a comparison with cover at an earlier reporting date.

Sakthi Finance said it is primarily engaged in financing and had no separate reportable segments under Indian Accounting Standard 108, or Ind AS 108. Its unaudited financial results for the quarter and half year ended 30 September 2026 were reviewed by the Audit Committee and approved by the Board on 12 November 2026; P N Raghavendra Rao & Co., Chartered Accountants, reviewed or audited those results.

Conclusion

Sakthi Finance's September 2026-quarter disclosure records Rs 64.497 crore of public NCD principal repayments across secured 2024 options and unsecured 2021 options, plus Rs 13.0563 crore of related disclosed interest net of tax deducted at source. It also records Rs 17.5265 crore raised through unlisted cumulative preference shares, a different form of funding from the maturing public NCDs.

The next item to watch is Sakthi Finance's use of the preference-share proceeds for the objects set out in its 26 August 2026 and 28 September 2026 offer letters. Further disclosures could also clarify the terms of that preference-share placement and the schedule for remaining NCD maturities, neither of which was specified in the 12 November 2026 announcement.