Siddhartha Bank’s 10.5% debenture closes today; Issue collected only Rs 5 crore from the general public till yesterday

NIBL Ace Capital will be closing 10.5% SBL Debenture 2082 today. As per the officials at NIBL Ace Capital, the issue was able to collect only about Rs 5 crore from the general public. Debentures worth Rs.2.25 Arba were issued at par value of Rs.1000 per unit from 23^rd Mangsir, 2075. Five crore is collected through public placement so, total collection cannot be figured out at the point as there is room for private placement as well. Out of the total debentures, 20% of the issue (Rs 45 crores) was issued for general public. The debentures with maturity period of 7 years will be providing interest rate of 10.5% annually to the debenture holders. Applications could be placed for minimum 25 units and maximum 100,000 units.

Before Siddhartha Bank, Sanima Bank had issued “10% Sanima Debentures 2085” which will also went unsubscribed. In fact, 66% of the issue went unsubscribed for the debenture. Sanima bank had issued 20 lakh unit debentures at Rs 1,000 per unit. Out of the total debentures, 20% of the issue (i.e. issue of Rs 40 crore) was issued for the general public by Sanima.  

Debentures were supposed to be attractive to investors provided the fluctuating interest rates. However, the continuous unsubscribed issues reflect a different story.