Poonawalla Fincorp Limited has announced the issuance of unsecured, redeemable, rated, subordinated non-convertible debentures (NCDs) to raise up to ₹250 crore. These instruments, categorized as Tier II capital, are being issued through a private placement under the FY2026-27 series. The move is aimed at strengthening the company’s capital base, with a base issue size of ₹150 crore and a green shoe option for an additional ₹100 crore.
Capital Raising Initiative
The Finance Committee of Poonawalla Fincorp Limited has greenlit the issuance of 25,000 NCDs, each with a face value of ₹1,00,000. This strategic capital-raising exercise is designed to bolster the company’s Tier II capital position. The issuance will be conducted via private placement, ensuring the company maintains a robust capital structure for its ongoing financial operations in the FY2026-27 period.
Issue Structure and Terms
The total fund-raising target is set at ₹250 crore, comprising a base amount of ₹150 crore and a green shoe option of ₹100 crore. These debentures, designated under the ‘SDA1’ series, are unsecured and carry specific protective clauses. In the event of a payment delay for interest or principal exceeding three months, the company is mandated to pay an additional 2% coupon rate above the standard rate until the default is rectified to the satisfaction of the debenture trustees.
Listing and Governance
The company has confirmed that the NCDs will be listed on BSE Limited to provide transparency and accessibility to eligible investors. While terms regarding the tenor, coupon, and payment schedules are detailed in the key information document, the issuance reflects Poonawalla Fincorp’s commitment to disciplined debt management and clear governance standards for its debenture holders.
Source: BSE
