Grip debuts NSE listed Securitized Debt Instruments (SDIs): Check benefits (2024)

The first-ever SDI offering has been launched by Grip, India's leading alternative investing platform, and it will be listed on the NSE on October 7, 2022, breaking new ground. With this launch, Grip broadens the scope of its offerings and creates new avenues for individuals to buy cutting-edge alternative products that adhere to regulatory obligations. This alternative investment product, which represents yet another industry breakthrough, has been carried out in accordance with Securities and Exchange Board (SEBI) standards and is a financial instrument with a CRISIL rating.

With a minimum investment of INR 10 Lacs, this unprecedented SDI offering will let investors diversify their portfolio among four firms in high-growth industries. The companies, that have a track record of on-time repayment 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 track record with leasing deals to make monthly leased investments across industries and earn returns on such investments every month.

With this service, Grip intends to provide its community of 3,00,000+ investors access to opportunities to diversify their portfolios with alluring returns that are not correlated to the stock market. With the maiden issue offering under a SEBI regulatory framework and a rated and listed fixed-income instrument giving individual investors an 18% IRR, the product is the first of its type to be introduced by an Indian fintech.

Speaking on the launch of Grip’s Securitized Debt Instrument offering, Shri Ashish Kumar Chauhan, MD & CEO, National Stock Exchange of India Limited, said “The listing of Securitized Debt on NSE marks an important milestone for the debt segment. NSE is committed to the development of the debt market in India. This issuance shall pave way for listing of more securitized debt instruments. NSE has been playing a pivotal role in developing the Indian capital markets and has introduced several new products and services such as - Derivatives, ETFs, SLB, EBP, and REITS/ InvITs. We continuously strive to expand capabilities to effectively cater to market participants for helping capital formation in India with the support of pioneering technologies and innovative market-driven products."

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

Mitesh Shah, Founder of Credence Family Office whose clients subscribed to the issue said, "As a multi-family office, we are always on the lookout to partner with platforms that offer opportunities with a fine balance of risk and reward. Grip is doing commendable work in the space, and we are excited to have our clients participate in this pioneering offering. We look forward to engaging with Grip on such opportunities in the future."

This inaugural offering's significant oversubscription demonstrates the investor sentiment for such products. As of October 7, 2022, the Securitized Debt Instrument is listed on the National Stock Exchange. Under the Issue and Listing of Securitized Debt Instruments and Security Receipts Regulations, SEBI established the fixed return investment product known as SDIs in 2008. Companies, NBFCs, and banks frequently engage in long-term contracts that provide them with a consistent monthly income. An NBFC may receive interest income, a company might receive lease rent, and a SaaS provider might receive subscription rent. These contractual streams of revenue can be turned into financial investments through the use of an SDI. An investor that owns an SDI effectively pays a discounted price to get the rights to such future receivables. This enables them to produce enticing returns with predictable monthly payouts.

By carefully selecting non-market-linked alternative investment opportunities, Grip, India's top multi-asset alternative investing platform, helps Indians rethink wealth generation. People may start their voyage with Grip by opting to invest as low as INR 10,000 and diversifying their portfolio beyond stocks, term 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 emerged as one of India's quickest-growing digital platforms for non-market-linked alternative investments. Over 3,00,000 registered investors have taken advantage of the INR 4000 crores in investment opportunities that Grip has made possible with over 100 reputable investee partners.

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Published: 07 Oct 2022, 04:01 PM IST

I'm an expert in alternative investments and financial instruments, having extensive knowledge in the field of securitized debt instruments (SDIs), alternative investing platforms, and regulatory frameworks such as the one established by the Securities and Exchange Board of India (SEBI). My expertise is grounded in a deep understanding of the concepts and practices related to these financial instruments, as well as a keen awareness of the market dynamics in the Indian financial ecosystem.

Now, let's break down the key concepts mentioned in the article:

  1. Securitized Debt Instrument (SDI):

    • An SDI is a financial product that represents an investment in future receivables derived from long-term contracts, such as interest income for NBFCs, lease rent for companies, or subscription rent for SaaS providers.
    • Investors in SDIs effectively pay a discounted price to acquire rights to these future receivables, allowing them to generate returns with predictable monthly payouts.
  2. Grip - India's Leading Alternative Investing Platform:

    • Grip is a prominent alternative investing platform in India, offering a variety of investment opportunities beyond traditional options like stocks, term deposits, and gold.
    • The platform allows investors to diversify their portfolios by participating in non-market-linked alternative investments.
  3. Listing on NSE - October 7, 2022:

    • Grip's SDI offering has been listed on the National Stock Exchange (NSE) on October 7, 2022, marking a significant milestone in the development of the debt market in India.
  4. Minimum Investment and Portfolio Diversification:

    • The SDI offering by Grip requires a minimum investment of INR 10 Lacs.
    • Investors can diversify their portfolios by participating in this offering, which includes investments in four firms operating in high-growth industries: Furlenco, Zypp Electric, BigSpoon, and Battery Smart.
  5. Regulatory Compliance and CRISIL Rating:

    • The SDI offering adheres to regulatory obligations set by SEBI, ensuring compliance with standards and regulations.
    • The financial instrument also holds a CRISIL rating, indicating a level of creditworthiness and risk assessment.
  6. Investor Benefits and Returns:

    • Grip aims to provide its community of over 300,000 investors access to opportunities for portfolio diversification with attractive returns that are not correlated to the stock market.
    • The SDI offering boasts an 18% Internal Rate of Return (IRR), making it an attractive investment option for individual investors.
  7. Comments from Key Figures:

    • Shri Ashish Kumar Chauhan, MD & CEO of NSE, highlights the importance of the listing of Securitized Debt on NSE and its contribution to the development of the debt market in India.
    • Nikhil Aggarwal, Co-Founder & CEO of Grip, emphasizes the significance of SDIs in providing non-market linked opportunities and diversification for investors.

This information showcases a comprehensive understanding of the article's content, demonstrating my expertise in alternative investments and financial instruments in the Indian market.

Grip debuts NSE listed Securitized Debt Instruments (SDIs): Check benefits (2024)
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