Poonawalla Fincorp Limited has decided to exercise the call option for its 12.10% Rated, Listed, Unsecured Non-Convertible Subordinated Perpetual Debt. The redemption date is set for July 3, 2026, with a record date of June 18, 2026. This move impacts the Rs. 1,70,00,000/- aggregate value of the Perpetual Debt, originally issued on July 5, 2016.
Poonawalla Fincorp Exercises Call Option on Perpetual Debt
Poonawalla Fincorp Limited announced on June 1, 2026, its decision to exercise the call option for its outstanding 12.10% Rated, Listed, Unsecured Non-Convertible Subordinated Perpetual Debt. This debt, issued on private placement basis, has an aggregate value of Rs. 1,70,00,000/- (Rupees One Crore-Seventy Lacs only).
Redemption Details
The company has set the redemption date for the said Non-Convertible Debentures (NCDs) as Friday, July 3, 2026. This exercise of the call option follows the terms and conditions outlined in the Information Memorandum dated July 1, 2016. The NCDs are listed on the wholesale debt market segment of BSE Limited.
The record date for the purpose of redemption has been fixed as Thursday, June 18, 2026. Debenture holders holding these NCDs as of the record date will be eligible to receive the redemption amount.
Financial Terms of Redemption
The NCDs will be redeemed at their face value of Rs. 5,00,000/- (Rupees Five Lacs only) each, along with accrued interest until the redemption date. The total redemption amount will be paid on July 3, 2026, by crediting the respective bank accounts linked to the demat accounts of the debenture holders.
The company has also submitted a request for approval for this redemption to the Reserve Bank of India (RBI).
Call Option Rationale
According to the Information Memorandum, the call option can be exercised by the Company at the end of the 10th year from the deemed date of allotment, which was July 5, 2016. The bond terms also state that if the call option is not exercised by the issuer at the end of the 10th year, the coupon rate would step up by 100 basis points to 13.10% p.a. for the subsequent year.
The company will extinguish the said NCDs fully after the payment of the redemption amount. Debenture holders are advised to update their bank account details with their Depository Participant to ensure smooth processing of the redemption.
Source: BSE
