Grip brings in first-ever Securitized Debt Instrument on NSE

Alternative investment platform Grip has introduced the first-ever SDI offering to be listed on the NSE

As part of expanding its range of offerings and opening up pathways for individual investors to invest in innovative and regulatory-compliant alternative products, wealth tech platform Grip has introduced the first-ever Securitized Debt Instrument (SDI) on the National Stock Exchange.

This alternative investment product is a Crisil-rated financial instrument and has been executed in line with The Securities and Exchange Board (SEBI) regulations, said a Grip spokesperson.

 The new SDI offering is expected to empower investors so as to diversify their portfolio across four companies in high-growth industries with a minimum investment of Rs 10 lakh. Backed by prominent institutional investors, the companies include Furlenco, Zypp Electric, BigSpoon, and Battery Smart, all of whom have a proven repayment track record on the Grip platform. Individual investors will be able to leverage Grip’s track record in leasing transactions and make monthly leased investments across industries and subsequently yield returns every month.

Ashish Kumar Chauhan, MD and CEO, NSE opined that the listing of Securitized Debt on the bourse needs to be seen as an important milestone for the debt segment. NSE, which is committed to the development of the debt market in the country, sees this SDI issue as paving the way for the listing of more securitized debt instruments in future.

SDI issuance seen as milestone for debt segment

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. The bourse continuously strives 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, Chauhan added.

Through the issuance of the SDI, Grip will be looking to provide its 3 lakh investor community with access to opportunities to diversify their portfolio with attractive returns which are non-stock market linked. The product is the first of its kind to be launched by an Indian fintech with the first issuance offering under a SEBI regulatory framework, rated and listed fixed income instrument offering 18 percent IRR to individual investors.

Pointing out that 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, Nikhil Aggarwal, Co-Founder & CEO, of Grip, said that the launch of SDIs stems from the company’s commitment to democratize wealth creation opportunities to all and is also part of our broader strategy to only offer regulatory compliant products.

Grip to make subsequent offerings available to a larger audience

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. The company expects the SDI offering will open a whole new asset class. And, as a platform, Grip will be looking to make subsequent offerings available to a larger audience.

The Securitized Debt Instrument has been listed on the National Stock Exchange as on October 7, 2022. The significant oversubscription received by this first offering is representative of the investor appetite for such products.

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