Sundaram Finance has announced that its Board of Directors has approved a proposal to raise ₹500 crore in Tier 2 capital. This fundraise will be executed during the 2026-27 financial year through the issuance of Subordinated Non-Convertible Debentures. The capital will be raised on a private placement basis, allowing the company the flexibility to issue the debt in one or more tranches to support its ongoing financial operations and growth objectives.
Strategic Capital Expansion
In a meeting held on May 25, 2026, the Board of Directors of Sundaram Finance Limited authorized the mobilization of additional funds to strengthen the company’s capital base. The initiative involves raising up to ₹500 crore, which will be classified as Tier 2 capital. This move is designed to bolster the company’s financial position and provide the necessary liquidity to sustain business expansion throughout FY 2026-27.
Details of the Issuance
The company plans to utilize the issuance of Subordinated Non-Convertible Debentures as the primary instrument for this capital raise. The debentures will be issued on a private placement basis, a strategy that offers the organization efficiency in capital procurement. The Board has provided the flexibility to issue these instruments in one or more tranches, allowing the company to time the market effectively as it meets its funding requirements throughout the fiscal year.
Source: BSE
