Poonawalla Fincorp Limited’s Finance Committee has approved the issuance of secured, redeemable, rated, listed, non-convertible debentures (NCDs) aggregating up to ₹2,000 crore. The issuance will be conducted through a private placement. The NCDs will have a face value of ₹1,00,000 each and are proposed to be listed on the BSE Limited. This move is aimed at bolstering the company’s capital base and funding requirements.
Poonawalla Fincorp Secures Funding Through NCD Issuance
Poonawalla Fincorp Limited has announced a significant step in its capital-raising strategy, with its Finance Committee approving the issuance of secured, redeemable, rated, and listed non-convertible debentures (NCDs). The total aggregate amount for this issuance is set at a substantial ₹2,000 crore (Rupees Two Thousand Crore only). These NCDs will be offered on a private placement basis to eligible investors, marking a key move to enhance the company’s financial resources.
Key Details of the NCD Issuance
Each NCD will have a face value of ₹1,00,000 (Rupees One Lakh only). The company plans to issue these debentures in dematerialized form. The proposed NCDs are intended to be listed on the BSE Limited, providing liquidity for investors. The total issuance is structured with a base issue and a provision for oversubscription via a green shoe option, allowing the company to raise additional funds if market demand is strong.
Issuance Series and Amounts
The issuance includes two series: PFL NCD series E1 FY 2026-27 Re-Issuance I and PFL NCD SERIES F1 FY 2026-27. The first series has a base issue of ₹100 crore with a green shoe option to retain oversubscription up to ₹400 crore. The second series, PFL NCD SERIES F1 FY 2026-27, has a base issue of ₹750 crore with a green shoe option to retain oversubscription up to ₹750 crore. This structure allows for flexibility in fundraising, with the total aggregating up to the planned ₹2,000 crore.
Security and Terms
These NCDs are secured by a first-ranking pari passu charge on the Company’s hypothecated properties, ensuring sufficient security cover. The specific terms regarding the schedule of payment of coupon, interest, principal, and redemption dates will be detailed in the key information document. In case of any delay in payment of interest or principal for a period exceeding three months, the company shall pay coupon on the NCDs at a rate of 2% (two percent) over and above the applicable coupon rate until the event of default is cured.
Source: BSE
