Poonawalla Fincorp Limited has successfully completed the allotment of 15,500 unsecured, rated, and subordinated non-convertible debentures. The issuance, which qualifies as Tier II capital, raised a total of ₹155 crore through a private placement. These instruments carry a coupon rate of 8.4308% per annum and have a tenure of 10 years, with a maturity date set for April 24, 2036.
Details of the Issuance
The company issued these debentures to bolster its Tier II capital, with a face value of ₹1,00,000 per instrument. The total issue size of ₹155 crore comprises a base issue size of ₹150 crore and an additional ₹5 crore from a green shoe option utilized to retain oversubscription. This move is part of the company’s broader strategy to strengthen its capital base for long-term growth.
Key Terms and Maturity
The debentures, categorized under the series ‘SDA1’ FY2026-27, are set for a tenure of 10 years. Allotted on April 24, 2026, they will reach maturity on April 24, 2036. Investors will receive an annual interest rate of 8.4308%. The instruments are listed on the debt market segment of the BSE Limited to ensure market transparency and liquidity for debenture holders.
Compliance and Default Provisions
The company has established clear protocols for the payment of interest and principal, with specific cash flow illustrations provided in its key documentation. In the event of a payment delay exceeding three months, the company is obligated to pay an additional 2% penalty interest above the base coupon rate until the default is fully cured to the satisfaction of the appointed debenture trustee.
Source: BSE
