Details of the Corporate Bond:
- Name of the Issuer: Samunnati Financial Intermediation & Services Private Limited
- Product: Senior unsecured bond (regulated by SEBI)
- Yield: 13.50% p.a.
- Tenure: ~12 months
- Min Investment: ~Rs 1,00,000
- Interest repayment: Monthly
- Principal repayment: Monthly
- Rating: CRISIL BBB
Key Highlights:
- Experienced senior management backed by reputed investors like Accel, Elevar and responsAbility
- Comfortable capitalization levels supported by frequent equity raise rounds; Capital adequacy ratio at 30% and as of H1FY 24
- Book size of ~1100 crore in Sep'23 with a Net Worth of 702 crore
- Fresh credit lines in FY24 from many leading financial institutions including IDFC First Bank, Tata Capital and Northern Arc Capital
Overview:
Samunnati Financial Intermediation & Services Private Limited (Samunnati), headquartered in Chennai, is promoted by Mr. S.G. Anil Kumar. The company started its operations in November 2014. It is registered with the RBI as an NBFC with focus towards agri value chain financing. Samunnati lends to agri producers, intermediaries (majorly Community Based Organizations (CBO)/Farmer Producer Organizations (FPO)) and traders of agri products for asset creation, working capital financing and receivable financing. Samunnati has a wholly-owned subsidiary called Samunnati Agro Solutions Private Limited (SAS) with a tangible net worth of Rs.90 crore as of H1FY 24 that is engaged in trade credit activities of agri products.
Samunnati had an AUM of Rs. 1076 crore and a net worth of Rs. 702 crore as on Sept 30, 2023. Its operations are spread across the country in 26 states including Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, Odisha, Madhya Pradesh, Uttar Pradesh, Bihar, Rajasthan, Haryana, Jharkhand, Gujarat, Uttarakhand, West Bengal, Punjab, Chhattisgarh, Delhi, Chandigarh, Telangana and Himachal Pradesh. As of Sep'23, Tamil Nadu, Karnataka and Maharashtra contributed 27%, 13% and 11% respectively of the portfolio.
Promoter/ Management:
Anil Kumar SG: Anil is the founder and CEO of Samunnati. He started his career with Canara Bank and then joined ICICI Bank. He is also the founding Trustee of IFMR Trust. In his career of around 3 decades, he has extensively worked in the areas of General Banking, Retail Banking, Microfinance, Rural & Agricultural Finance. In his career, he has largely focussed on financial inclusion, customer protection, a wealth management approach for low income households and product development for remote rural markets.
Key Financials:
While the company posted losses in FY23 owing to covid related provisions, it has returned back to profitability this year, posting a PAT of Rs. 10 crore for the six month period ending Sep'23.
All figures in INR crore
|
Balance Sheet |
FY23 |
H1FY24 |
|
Cash & cash equivalents |
94 |
38 |
|
Bank balances |
22 |
63 |
|
Loans Portfolio |
1117 |
1100 |
|
Investments |
268 |
338 |
|
Other financial assets |
127 |
106 |
|
Fixed Assets |
6 |
4 |
|
Total Assets |
1634 |
1649 |
|
Total Equity |
560 |
702 |
|
Borrowings |
949 |
851 |
|
Provisions |
101 |
74 |
|
Other Liabilities |
24 |
22 |
|
Total Liabilities & Equity |
1634 |
1649 |
|
P&L Statement |
FY23 |
H1FY24 |
|
Interest Income |
184 |
93 |
|
Total Income |
196 |
105 |
|
Finance cost |
122 |
53 |
|
Impairment on Financial instruments |
122 |
-2 |
|
Operating Expenditure |
82 |
40 |
|
Profit Before Tax |
-130 |
14 |
|
Tax Expense |
-32 |
4 |
|
PAT |
-98 |
10 |
Samunnati’s portfolio is comprised of agri business loans with an average ticket size of ~Rs. 5 crore. About 28% of the AUM consisted of loans of Rs. 1-5 crore and 25% of the AUM is of Rs. 5-10 crore as on Sep'23. In terms of tenure, around 30% of the book is in the range of 3-6 months and 17% is over 3 years.
Lenders:
The prominent lenders in Samunnati are:
Banks and FIs:
- The Catholic Syrian Bank
- Symbiotics
- Triodos Bank
- USDFC
- State Bank of India
- IDFC First Bank
NBFCs:
- Northern Arc Capital
- MAS Financial
- responsAbility Investments
- Maanaveeya Development & Finance
- Alteria Capital
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.