ICRA

The newly expanded and refurbished Sakthi Lockers branch at Nanjundapuram Road, Coimbatore, was inaugurated on August 30 by Mr. M. Balasubramaniam, Vice-Chairman and Managing Director of Sakthi Finance Ltd. During the event, Mr. Balasubramaniam appreciated the company for enhancing its facilities. The newly added locker facility was inaugurated by Ms. Shruthi Balasubramaniam, Executive Director of Sakthi Finance Financial Services Ltd (SFSL). In her address, Ms. Shruthi highlighted a significant increase in the purchase of jewellery and other high-value items over the past few years, which has created a growing demand for secure storage solutions that allow for easy retrieval. To accommodate this rising need for lockers, SFSL is focusing on further expansion. She also shared that the company is poised to launch new locker services in both established and emerging markets, including Chennai, Bengaluru, and various district headquarters in Tamil Nadu.

Sakthi Lockers launches its bigger refurbished branch at Nanjundapuram

SFL has a regionally concentrated portfolio with Tamil Nadu and Kerala accounting for 94% of the total portfolio as of December 2023. The portfolio share to remain concentrated, given the company’s limited branch expansion plans for the medium term.

Over the last few years, SFL’s financial flexibility was constrained by the continued weakness in the performance of Group entities; however, with the recent resolution of some of the Group-related issues, the same is expected to improve, going forward. SFL has been significantly dependent on market borrowings in the recent past, especially via the public issuance of debentures. SFL’s ability to diversify its lender base to achieve its long-term growth plans and to maintain adequate liquidity will be a key monitorable. 

The issuer has made timely interest payments.

Mr. M. Balasubramaniam, Vice Chairman and Managing Director 

SFL has a track record of more than six decades in the vehicle finance segment, with operations across Tamil Nadu, Kerala, Andhra Pradesh and Karnataka. It has a good understanding of the target segments, mainly the used commercial vehicle (CV) segment, and has established customer relationships.


SFL has an adequate capitalisation profile with a gearing2 of 6.0 times as of December 2023. The company’s modest near-term portfolio growth expectations would keep its capital structure under control. SFL envisages to reduce its gearing below 6.0 times over the medium term, supported by the raising of capital and better internal accruals. This would help the company improve its portfolio growth further over the medium to long term.


Security Name: 0.00% Sakthi Finance Limited 18 Dec 2027

ISIN:

INE302E07797

YOUR EARNING

Your Investment

Final Payout

₹0

*All Interest Payments will be subject to TDS (Not Applicable on Government Securities and Tax Free Bonds)

YOUR RISK

BBB / Stable

ICRA

Senior

Secured

ISSUER

Sakthi Finance Limited

Recent News

Sakthi Lockers launches its bigger refurbished branch at Nanjundapuram

Related Videos

What are Bonds?

Corporate Bonds: Issuance, Trading & Settlement

STEPS TO BUY THIS BOND

Information required for KYC

PAN Card

Bank Account Proof

Aadhaar Card

Demat Account Proof

How to exit the investment?

To know more about the Bond and the issuer, download the Information Memorandum.

To read about the reasons for the ratings assigned to the Bond, download the Rating Rationale.

Clean Price

Yield (YTM)

Principal Amount

Accrued Interest from

Face Value

Market Value

Stamp Duty

Select a Settlement Date:

as on Invalid date

as on Jun 30, 2025

Total Investment

Still looking for assistance?