Poonawalla Fincorp Limited has received approval for the issuance of non-convertible debentures (NCDs) aggregating up to ₹800 crore. These are zero coupon, secured, redeemable, rated, and listed NCDs, offered through private placement. The issuance is part of the company’s capital raising strategy to bolster its financial position. The NCDs will be issued in dematerialized form with a face value of ₹1,00,000 each.
Poonawalla Fincorp Issues ₹800 Crore NCDs
Poonawalla Fincorp Limited announced today the approval for the issuance of non-convertible debentures (NCDs). The Finance Committee, authorized by the Board of Directors, sanctioned the issuance of these NCDs, which are zero coupon, secured, redeemable, rated, and listed instruments. The total amount aggregating for this issuance is up to ₹800,00,00,000 (Rupees Eight Hundred Crore only). These NCDs will be issued in dematerialized form through a private placement to eligible investors.
Key Terms of the NCD Issuance
The NCDs will have a face value of ₹1,00,000 (Rupees One Lakh only) each. The total number of securities proposed to be issued is 80,000. The base issue size is set at ₹600,00,00,000 (Rupees Six Hundred Crore only), with a green shoe option to retain oversubscription up to ₹200,00,00,000 (Rupees Two Hundred Crore only). The NCDs are proposed to be listed on BSE Limited. The obligations under the debentures will be secured by a first-ranking pari passu charge on the Company’s hypothecated properties.
Coupon and Redemption Details
As the NCDs are zero coupon, there will be no periodic coupon payments. However, in case of any delay in payment of interest or principal amount for a period exceeding three months from the due date, the company shall pay a default coupon on the NCDs at a rate of 2% over and above the applicable coupon rate until such event of default is cured. Further details regarding the tenor, schedule of payment of coupon/interest and principal, date of allotment, and date of redemption are specified in the key information document.
Source: BSE
