Bond Overview
Vivriti Capital Limited is the company that is responsible for the issuance of non-convertible debentures. These NCDs have been given an A (considered Positive) rating by CARE and an A (Stable) rating by ICRA. There are five different series of NCDs, and their coupon rates range from 9.57 to 10.5% per annum. Their maturities are either 18 months or 24 months. The NCDs are guaranteed by nature and are redeemable. The issue opening date is Aug 18, 2023, and the closing date is Aug 31, 2023.
| Issue Open | Aug 18, 2023 – Aug 31, 2023 |
| Security Name | Vivriti Capital Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 250.00 Crores |
| Issue Size (Shelf) | Rs [.] Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | ICRA A (Stable) by ICRA Limited and CARE A+ by CARE Ratings Limited |
| Tenor | 18 and 24 Months |
| Series | Series I to V |
| Payment Frequency | Monthly, Quarterly and Annually |
| Basis of Allotment | First Come, First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
About Vivriti Capital Private Limited
VCPL is an NBFC-ND-SI, or non-banking financial company, that does not accept deposits. NBFCs and other organisations can make use of a variety of debt financing options from VCPL, which Vineet Sukumar and Gaurav Kumar created in June 2017. These options include loans, working capital financing, and trade financing. Additionally, it has started to expand its retail presence through many co-lending agreements with other NBFCs. Two of the group companies, VAM and CAPL, are owned by VCPL. VAM, a 67% subsidiary (on a diluted basis), manages alternative investment funds (AIFs).
For companies that are either unrated or have ratings that prevent them from having simple access to banking finance from urban or semi-urban areas, Vivriti Capital provides term loans, working capital demand loans, co-lending with commercial partners, receivables securitization, direct assignment of receivables, supply chain finance, and bonds and commercial paper subscription.
Mid-sized corporations in the healthcare, pharmaceutical, logistics, retail, trade, steel, auto, manufacturing, financial services, and fast-moving consumer goods industries are among the company’s clients. As of March 31, 2023, the company has interests in bonds, securitizations, and commercial paper of 132,706.77 lakhs and total outstanding loan assets of 450,873.24 lakh rupees.
As of March 31, 2023, Vivriti had an AUM of 583,580.01 lakhs, up from 381,686.09 lakhs as of the previous year. This AUM was spread across 194 mid-corporates, 13.21 lakh borrowers/clients through co-lending agreements, and 24 Anchors covering 183 MSME and non-MSME counterparties for supply chain finance.
Company Promoters
Gaurav Kumar and Vineet Sukumar are the promoters of the company.
Company Strengths
- AUM for VCPL has grown by 50% from its commencement in FY2018, reaching Rs. 5,836 crores as of March 2023 after growing by 50% in FY2023.
- The capitalisation profile is supported by consistent capital infusions.
- Due primarily to margin improvement and low provision and credit expenses, VCPL’s net profitability grew to 2.2% in FY2023 from 1.9% (2.0%, adjusted for the impact of capital raised in March 2022) in FY2022 (1.0% in FY2020).
Company Weakness
- Limited operational track record and moderate maturation of a significant portion of the loan book.
- Profitability is moderate but improving, while fund expenses remain above average.
- Exposure to riskier asset classes, which entail asset quality risks and enterprise concentration exposures.
Objectives of the Issue
The firm intends to put the net proceeds from the offering towards supporting the following strategic initiatives:
- Subsequent lending and financing, as well as the repayment of interest and principal on the company’s current debt,
- The general objectives of the corporation.
Ratio of Allocation
The allocation ratio is calculated using the SEBI criteria. Before the allocation ratio can be made public, it must be approved by the SEBI. After the IPO subscription time has concluded, applications will be categorised into numerous categories. When an IPO is issued, the category-wise allocation percentage is always decided and published. The Allocation Ratio will be used for unit allotments to applicants. The chart below shows the application ratio for Vivriti Capital Limited’s NCD-IPO.
Issue Evaluation
Pros
- Because the company guarantees these NCDs, your investment receives an additional layer of protection from loss.
- The coupon rates offered by the issuer are high in contrast to the rates offered on FDs.
Cons
- The influence of macroeconomic factors like COVID on the company has been unfavourable. These circumstances are, nevertheless, steadily getting better.
NCD Ratings
The company has been given the ICRA A (Stable) rating for the NCDs that are intended to be issued in accordance with this Issue, and it has been given the CARE A+ rating by CARE Ratings Limited. Both of these ratings are considered to be strong.
Financial Performance
For the last three fiscal years, Vivriti Capital Private Limited has reported consolidated total income/net profits of Rs. 245.67 crore/Rs. 14.42 crore (FY21), Rs. 2,417.28 crore/Rs. 1,579.09 crore (FY22), and Rs. 703.59 crore/Rs 134.89 (FY23).
How do I apply on the BondsIndia website?
Apply fast by following the instructions below:
- Visit our official website BondsIndia
- Select the series under Public Issue Bonds,
- Complete PAN and Demat account details,
- Enter your UPI number,
- Approve the payment mandate,
To Sum Up
Vivriti Capital Limited was established in 2017, and it currently offers several loan solutions to mid-market enterprises nationwide. The Reserve Bank of India (RBI) has recognised the company as qualifying as a non-deposit-taking, systemically significant non-banking financial corporation (NBFC-NDSI). It has locations in Maharashtra, Karnataka, Rajasthan, and Tamil Nadu. ICRA Limited has assigned Vivriti Capital a credit rating of A (with a stable outlook), and CARE Ratings has given the company a rating of A (with a positive outlook) as of the 31st of March, 2023.
However, individuals that are well informed could check out the upcoming NCD IPO and think about making investments for returns over the medium to long term.