Overview – The Clix Capital Private Limited Bond on Altifi

Details of the Corporate Bond:

• Name of the Issuer: Clix Capital Private Limited
• Product: Senior secured Bonds (regulated by SEBI)
• Yield: 10.75% p.a XIRR
• Tenure: ~ 5 month
• Min. Investment: ~ Rs 2,50,000
• Interest repayment: Quarterly
• Principal repayment: Quarterly
• Rating: CARE A

Key Highlights:

• Strong board and governance with 3 Independent directors further supported by experienced senior management team
• Healthy spike in disbursements with around INR 3100 Cr. done in 9M FY24, AUM stands at INR 5,360 crore in Dec'23
• Comfortable capitalization levels with CRAR of 28.83% as of Dec'23 with leverage of 2.6x, liquidity was supported by fund raise of over INR 3300 Cr. during the year

Overview:

CLIX Capital was founded by industry veterans Mr Pramod Bhasin and Mr Anil Chawla. Clix is a prominent non-banking financial company (NBFC) headquartered in Gurgaon. Established with the vision of providing comprehensive financial solutions, Clix offers a wide array of services catering to the needs of both individuals and businesses across the country. It operates primarily within the Indian financial services sector, serving a diverse clientele ranging from individual consumers to small and medium-sized enterprises (SMEs) as well as larger corporate entities. The company has established a strong market presence through strategic partnerships, innovative offerings, and a customer-centric approach.

Clix had an AUM of INR 5360 crore and networth of INR 2083 crore (tangible NW INR 1540 crore) as on Dec 31, 2023. Operations are spread across Tamil Nadu, Maharashtra, Karnataka and Telangana which contribute 55% of the portfolio as of Dec23.

Promoter/ Management:

Pramod Bhasin (Director): Pramod’s career spans an entrepreneurial and professional career across the globe in the US, UK and Asia. He has built global businesses in Financial Services, Business process Management and Skills Training. Pramod is the founder of Genpact starting in 1997 and considered the pioneer of the Business Process Management industry in India today. Prior to Genpact, Pramod’s career with GE spanned 25 years across Europe, US and Asia. He started GE Capital’s initial operations in India as the CEO in 1994 and was also the President of GE Capital Asia from 1999. During this time, he was the architect of GE Capital’s businesses in Commercial and Consumer Finance and joint ventures with SBI in credit cards and HDFC in Consumer Finance. Prior to that he worked with GE Capital in Corporate Finance in New York and Stanford, CT., as well as with GE in London and New York.

Rakesh Kaul (CEO & Director): Rakesh brings over two decades of experience in the Financial Services industry. He joined Clix from RHB Malaysia, where he led the Consumer banking business for the group covering Malaysia and ASEAN markets. Prior to RHB he was with Citigroup and did a number of leadership roles across its Consumer Banking, Corporate Banking and Capital Markets divisions. He brings deep and diverse cross functional exposure across Sales & Distribution, Business Management, Product Development, Corporate Strategy and Risk Management. Rakesh also brings tremendous leadership in building teams, managing businesses through change cycles, building scale and leading transformation.

Vikram Rathi (Chief Risk Officer): Vikram has more than 21 years of experience in Credit Risk management. Before getting promoted to Chief Risk Officer in Sep-21 he was Head of Central Risk, Policy, and FCU at Clix Capital. He has joined Clix Capital in Aug-2017. After working for close to 2 years as VP- Risk and Policy, he resigned and joined Rattan India Finance Pvt. Ltd as CRO. After working 16 months in Rattan India, he re-joined Clix Capital in Nov-20 as Head of Central Risk. He has also worked in risk roles in various other companies such as Barclays, GE Consumer, and Tata International Limited.

Key Financials:

All figures in INR crore

Brief on underlying security:

Bond is secured by the loans originated by Clix, which are largely loans mirroring the overall portfolio of the company covering 1.1x of principal outstanding of the bonds at any given time during the tenure. This means the bond is secured by first ranking, exclusive and continuing charge on this pool of loans. These loan receivables are provided to the Debenture Trustee on a quarterly basis. Further, Loans with overdue are replaced with current receivables if it crosses 0 dpd. Also, some of the covenants at company level are- CRAR shall not fall below 18%, NNPA to Tangible Networth shall not be more than 20% and NNPA shall be less than 3%.

Lenders:

The prominent lenders in Clix Capital are:

Banks/ PE/ VC firms:

• Bank of Baroda
• Bank of India
• The Bank of Maharashtra
• Canara Bank
• State Bank of India

NBFCs and FIs:

• Northern Arc Capital
• Bajaj Finance
• JM Financial
• Aditya Birla
• Mas Financial

Disclaimer: The content of this blog should not be considered as financial or investment advice. Readers/Viewers may consult their financial advisor before any investment.