Home Investments Grip debuts NSE listed Securitized Debt Instruments (SDIs): Check benefits

Grip debuts NSE listed Securitized Debt Instruments (SDIs): Check benefits

by Ozva Admin

The first SDI offering has been launched by Grip, India’s leading alternative investment platform, and will be listed on the NSE on October 7, 2022, breaking new ground. With this launch, Grip expands the reach of its offerings and creates new avenues for people to purchase state-of-the-art alternative products that comply with regulatory obligations. This alternative investment product, which represents another advance in the industry, has been made in accordance with the standards of the Securities and Exchange Board (SEBI) and is a CRISIL-rated financial instrument.

With a minimum investment of INR 10 Lacs, this unprecedented SDI offering will allow investors to diversify their portfolio among four companies in high-growth industries. The companies, which have a history of paying on time on the Grip platform, include Furlenco, Zypp Electric, BigSpoon and Battery Smart and are backed by renowned institutional investors. Individual investors will be able to take advantage of Grip’s history with lease agreements to make monthly leased investments in all industries and earn returns on those investments every month.

With this service, Grip intends to provide its community of more than 300,000 investors with access to opportunities to diversify their portfolios with attractive returns that are not correlated to the stock market. With the inaugural issuance offering under a SEBI regulatory framework and a rated and listed fixed income instrument providing individual investors with an IRR of 18%, the product is the first of its kind to be introduced by an Indian fintech.

Speaking on the launch of Grip’s securitized debt offering, Shri Ashish Kumar Chauhan, MD and CEO, National Stock Exchange of India Limited, said: “The listing of securitized debt on NSE marks an important milestone for the securitized debt segment. debt. NSE is committed to the development of the debt market in India. This issuance will pave the way for the listing of more securitized debt instruments. NSE has played a key role in the development of the Indian capital markets and has introduced several new products and services such as derivatives, ETFs, SLBs, EBPs and REITS/InvITs. We continually strive to expand capabilities to effectively serve market participants to help capital formation in India supported by pioneering technologies and innovative market-driven products.”

Nikhil Aggarwal, Co-Founder and CEO of Grip, said: “Investors are recognizing the importance of diversification when it comes to their portfolio and continue to look for non-market opportunities. The launch of SDI stems from our commitment to democratizing wealth creation opportunities for all and is also part of our broader strategy to offer only compliant products. Through fractional investments, individual investors will be able to avoid stock market volatility and invest in opportunities alongside renowned strategic investors and venture capital funds. We are confident that the SDI offering will open up a whole new asset class and as a platform we aim to make subsequent offerings available to a wider audience.”

Mitesh Shah, founder of Credence Family Office, whose clients subscribed to the edition, said: “As a multi-family office, we are always looking to partner with platforms that offer opportunities with a good balance of risk and reward. Grip is making it commendable to work on the space, and we are excited to have our customers participate in this pioneering offering. We look forward to partnering with Grip on such opportunities in the future.”

The significant oversubscription of this inaugural offering demonstrates investor sentiment for such products. As of October 7, 2022, the Securitized Debt Instrument is listed on the National Stock Exchange. Under the Regulations on the Issuance and Listing of Securitized Debt Instruments and Securities Receipts, SEBI established the fixed-return investment product known as SDI in 2008. Companies, NBFCs and banks often enter into long-term contracts that provide them with a constant monthly income. An NBFC may receive interest income, a business may receive lease rent, and a SaaS provider may receive subscription rent. These contractual income streams can be converted into financial investments through the use of an SDI. An investor holding an SDI effectively pays a discounted price to obtain the rights to such future receivables. This allows them to generate attractive returns with predictable monthly payments.

By carefully selecting non-market alternative investment opportunities, Grip, India’s leading multi-asset alternative investment platform, helps Indians rethink wealth building. Individuals can start their journey with Grip by choosing to invest as little as INR 10,000 and diversifying their portfolio beyond stocks, time deposits and gold thanks to the investor-first platform. Nikhil Aggarwal, Vivek Gulati and Aashish Jindal co-founded Grip in June 2020, and it has since become one of India’s fastest growing digital platforms for non-market-linked alternative investments. More than 3,00,000 registered investors have taken advantage of INR 4000 crores in investment opportunities that Grip has made possible with more than 100 renowned investment partners.

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