Vivriti Capital Limited to raise up to Rs. 500 crore through NCDs; ISSUE OPENS ON: Friday, August 18, 2023 ISSUE CLOSES ON: Thursday, August 31, 2023 with an option of early closure

Mumbai, 09th August 2023 (GNI): Ajay Manglunia, Managing Director & Head, Investment Grade Group, JM Financial Limited and Mr. Vineet Sukumar, Founder and Managing Director, Vivriti Capital Limited at the announcement of the  NCD Issue, in Mumbai – photo by Sumant Gajinkar GNI

–          The Public Issue includes a Base Issue size of up to Rs. 250 crore and a Green Shoe Option of up to Rs. 250 crore.

–          Each application should be for a minimum of 10 NCDs across all series collectively and multiples of 1 NCD thereafter (for all series of NCDs taken individually or collectively).

–          The minimum application size for each application for NCDs would be ₹10,000 across all series collectively and in multiples of ₹1,000 thereafter.

–          The proposed NCDs’ Public Issue have been rated [ICRA] A (Stable) by ICRA Limited; CARE A Positive by CARE Ratings Limited

–          Investors can get an effective yield from 9.98% to 10.49%* on across Series I to Series V with different tenure of interest payment and coupon rates

National, August 09, 2023 (GNI):  Vivriti Capital Limited (“the Company” or “VCL”), which is registered with the RBI as a non-deposit taking systemically important non-banking financial company (NBFC-ND-SI), is proposing to open a public issue of secured, rated, listed, redeemable, non-convertible debentures (“NCD”) of face value of ₹ 1,000 each for an amount up to ₹ 250 crore (“Base Issue Size”) with an option to retain oversubscription up to ₹ 250 crore (“Green Shoe Option”), cumulatively aggregating up to 50 lakh NCDs for an aggregate amount of up to ₹ 500 crore (“Issue Size” or “Issue Limit”). The Public Issue of NCDs is scheduled to open on August 18, 2023 and close on August 31, 2023, with an option of early closure.

*The Public Issue comprises Series I to Series V with different tenure of interest payment and coupon rates. Series I has a tenor of 18 months and coupon rate of 9.57% per annum (payable monthly) and an effective yield of 9.98% per annum. Series II has a tenor of 18 months and coupon rate of 10% per annum (payable annually) and an effective yield of 10.06% per annum. Series III has a tenor of 24 months and coupon rate of 9.65% per annum (paid on a quarterly basis, relevant interest will be paid on the same date of relevant month of each quarter from the Deemed Date of Allotment on the principal outstanding along with the Redemption Amount of the NCDs as per the #Principal Redemption Schedule and Redemption Amounts for Series III NCDs as provided in Prospectus) and an effective yield of 9.98% per annum -. Series IV has a tenor of 24 months and coupon rate of 10.03% per annum (payable monthly) and an effective yield of 10.49% per annum. Series V has a tenor of 24 months and coupon rate of 10.50% per annum (payable annually) and an effective yield of 10.48% per annum.

Vineet Sukumar, Founder and Managing Director, Vivriti Capital Limited, said, “The maiden public issue of NCDs of Vivriti Capital Limited is a milestone in our growth journey. Our clients comprise of mid-corporates. We offer innovative lending solutions to  improve our client experience and their operational efficiencies. We have delivered hassle-free flow of debt finance with flexibility and short turnaround times, on account of the Company’s technology advanced operating model and risk management framework.  We manage a portfolio of INR 5,835.80 crores and have provided debt solutions to over 194 mid-corporates across various sectors. While we have grown our loan book strongly in the last few years, we have continued to maintain a healthy asset quality till date.”

Parth Sanghani, Chief Treasury Officer, Vivriti Capital Limited, added, “We benefit from a large and diversified mix of lenders, which has increased over the years and included 218 institutional lenders/investors as of March 31, 2023, comprising a range of financial institutions and corporates, as well as 1,740 individual investors to meet our capital requirements. We believe that we have been able to access a wide range of lenders due to our good corporate governance, stable credit ratings, conservative risk management policies, strategic liability management and transparent communication. We plan to continue diversifying our funding mix and further optimize our cost of funds. Since our inception, we have onboarded a range of mutual funds, public sector banks, small finance banks, private banks, and NBFCs to diversify our lending profile, thereby de-risking our Company from an over dependence on any single fund source category. Diversification of our sources of funding in recent periods has contributed to an overall reduction in our average cost of borrowings in recent fiscal periods and has allowed us to maintain sufficient interest margins and achieve our liquidity goals, as well as maintain funding stability. We seek to reduce our average cost of long-term borrowings through improved credit ratings and by diversifying our borrowing profile.”

The Company proposes to utilize at least 75 % of the total amount from net proceeds from the issue towards onward lending, financing and for repayment of interest and principal of existing borrowings of the Company and maximum up to 25% of the total amount from net proceeds from the issue towards general purpose expenses.

The different categories for investors are: Category I Investor – Institutional Investors; Category II Investor – Non Institutional Investors, Category III Investor – High Net-Worth Individual Investors: Resident Indian individuals or Hindu Undivided Families through the Karta applying for an amount aggregating to above ₹ 1,000,000 across all options of NCDs in this Issue.

Category IV Investor – Retail Individual Investors: Resident Indian Individuals or Hindu Undivided Families through the Karta applying for an amount aggregating up to and including ₹1,000,000 across all options of NCDs in this Issue and shall include retail Individual Investors, who submit bid for an amount not more than ₹500,000 in any of the bidding options in the Issue (including HUFs applying through their Karta and does not include NRIs) through UPI Mechanism.

Credit rating letter and credit rating rationale dated June 12, 2023 (and revalidation letters dated July 11, 2023 and August 4, 2023) from CARE Ratings assigned a rating of “CARE A; Positive” to the NCDs. Credit rating letter and credit rating rationale dated June 7, 2023 (and revalidation letters dated July 12, 2023 and August 7, 2023) from ICRA Limited assigned a rating of “[ICRA] A (Stable)” to the NCDs.

The NCDs offered through this Prospectus are proposed to be listed on BSE Limited (“BSE”) (the “Stock Exchange”). BSE is the Designated Stock Exchange for the Issue.

JM Financial Limited is the Lead Manager to the Public Issue.

About Vivriti Capital Limited: Vivriti Capital Limited (formerly known as Vivriti Capital Private Limited) (“Vivriti” or the “Company”) is registered with the RBI as a non-deposit taking systemically important non-banking financial company (NBFC-ND-SI). The company was incorporated on June 22, 2017, in Chennai, India. Vivriti Capital is backed by marquee institutional investors such as the Creation Investments, Lightrock and TVS Capital which provide their expertise to operations, including through their representatives on the company’s Board. Vivriti offer lending products to mid-corporates. Such products include term loans, working capital demand loans, co-lending with financial partners, securitisation of receivables, direct assignment of receivables, supply chain finance and subscription to bonds and commercial paper. They cover a diversified demographic of clients through our lending products and provide access to financial services by leveraging technology and offering customized financial solutions to clients. The target clients comprise entities which are either unrated or have ratings that do not permit their clients to have easy access to banking finance, and primarily hailing from urban/ semi-urban areas. Their products comprise of term loans, working capital demand loans, investments in bonds issued by the borrower, subscription to commercial papers issued by the borrowers. The company extend debt finance to mid-corporates across sectors including, without limitation, companies in the business of healthcare, pharma, logistics, retail, trading, steel, auto, manufacturing, financial services and fast-moving consumer goods. The company focusses on ticket size of loans ranging from ₹ 0.10 lakh to ₹ 8,000 lakh, average ticket size of less than ₹ 350.00 lakh. As of March 31, 2023, the company had total outstanding loan assets of ₹ 450,873.24 lakh and investments in bonds, securitisations and commercial paper of ₹ 132,706.77 lakh. For the Financial Years ended March 31, 2023, March 31, 2022 and March 31, 2021, its portfolio yield representing interest income as a percentage of average outstanding of loan and investment assets (in the categories as provided above) for the same period was 14.19%, 13.79% and 14.00%, respectively. The company had an AUM of ₹ 583,580.01 lakh as of March 31, 2023 and ₹ 381,686.09 lakh as of March 31, 2022 across 194 mid-corporates and 13.21 lakh borrowers/ clients through co-lending arrangements and 24 Anchors covering 183 MSME and non-MSME counterparties for supply chain finance as of March 31, 2023. As of March 31, 2023, Vivriti has five regional offices in India in the states of Tamil Nadu, Maharashtra, Karnataka, Rajasthan, and Delhi. The Company seeks to be an environmentally and socially responsible financial institution and focus on generating sustainable long-term value for all stakeholders. The intention is to mainstream ESG practices into business, operations and value chain. Vivriti developed ESG specific risk assessment tools and expanding our focus on ESG including renewable energy, agriculture sector, etc.

Investors should see the prospectus dated August 8, 2023 of Vivriti Capital Limited (“Prospectus”) filed with the Registrar of Companies, Tamil Nadu at Chennai and submitted to BSE Limited (“BSE”) and Securities and Exchange Board of India (“SEBI”), including the section titled “Risk Factors” beginning on page 14 of the Prospectus, available on the websites of the Issuer at www.vivriticapital.com, BSE at www.bseindia.com, SEBI at www.sebi.gov.in and the websites of the Lead Manager www.jmfl.com.”