Aavas Financiers Limited has accepted the resignation of Mr. Sandeep Tandon as Chairperson and Non-Executive Independent Director, effective July 31, 2026. Mr. Tandon cited personal and professional commitments for his departure and confirmed there were no other material reasons for his resignation. The Board simultaneously appointed Mr. Vellur Gopalaraghavan Kannan as the new Chairperson and Non-Executive Independent Director, effective August 1, 2026. This leadership transition ensures continuity in governance as the company reconstitutes its key board committees.

The appointment of Mr. Kannan was approved by the Board of Directors vide circular resolution passed on July 31, 2026, based on the recommendation of the Nomination and Remuneration Committee. The disclosure was made pursuant to Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Kannan’s appointment as an Additional Director is subject to shareholder approval at the ensuing general meeting. His tenure as an Independent Director is for five consecutive years, from August 1, 2026, to July 31, 2031, and he is not liable to retire by rotation. His tenure as Chairperson is for one year, commencing August 1, 2026.

Mr. Kannan brings over 40 years of experience in the Banking, Financial Services, and Insurance sector. He began his career with State Bank of India in 1978 and served as Managing Director on the SBI Board until July 2016, overseeing domestic subsidiaries and associate banks. Prior to this, he was Managing Director and CEO of SBI Capital Markets Ltd. Post-retirement, he served as Chief Executive of the Indian Banks' Association from December 2016 to December 2019. He also advised an international investment fund specializing in stressed assets from November 2019 to March 2023 and chaired the RBI-appointed Committee on ATM Interchange Fees in 2019.

Consequent to these changes, the Board reconstituted four key committees effective August 1, 2026: the Stakeholders Relationship Committee, IT Strategy Committee, Nomination and Remuneration Committee, and Audit Committee. The composition of the Board and its committees remains compliant with the Companies Act, 2013, and SEBI LODR requirements. Mr. Tandon confirmed that he holds no directorships in listed entities other than Syrma SGS Technology Limited and 360 One Wam Limited, where he serves as a Director and Independent Director, respectively.

Committee Reconstitution Details

The following table outlines the new composition of the reconstituted board committees:

Governance Transition Analysis

The transition marks a significant shift in Aavas Financiers' leadership structure, replacing a long-standing chairperson with a seasoned banking executive. Mr. Kannan’s extensive background in risk management, treasury, and regulatory oversight—highlighted by his roles in SBI’s merger process and RBI committees—positions him to navigate complex financial regulations. The immediate reconstitution of critical committees, including the Audit and Nomination and Remuneration Committees, underscores the Board’s focus on maintaining robust governance standards during the leadership change. Shareholders will need to approve Mr. Kannan’s full appointment at the upcoming general meeting, ensuring democratic validation of this strategic hire.

Aavas Financiers has completed the private placement of 20,000 Senior, Secured, Rated, Listed, Transferable, Redeemable Non-Convertible Debentures (NCDs) aggregating ₹200 crore. The issuance, approved by the Executive Committee of the Board of Directors via circular resolution on July 30, 2026, raises capital through instruments carrying a face value of ₹1,00,000 each. The total settlement amount received stands at ₹200.22 crore, inclusive of a premium of ₹22.40 lakh on the non-anchor portion.

The NCDs carry a coupon rate of 7.80% per annum, payable annually from the date of allotment. The tenor is set at three years, with maturity scheduled for July 30, 2029, subject to business day conventions or acceleration events as defined in the transaction documents. Interest payments are structured to occur annually, while the principal repayment is due at the end of the 36-month period. The coupon rate is subject to reset processes, including step-up and step-down mechanisms, as detailed in the Key Information Document (KID).

The issue was divided into anchor and non-anchor portions. Anchor investors subscribed to 6,000 debentures worth ₹60 crore at par value. The remaining 14,000 debentures, valued at ₹140 crore, were allotted to non-anchor investors with a premium of ₹160 per NCD. This premium structure resulted in a higher settlement amount for the non-anchor tranche compared to its face value.

Security for the debentures is provided through a first-ranking exclusive charge of at least 100% of the aggregate principal and interest amount. This charge is created by way of hypothecation over identified receivables, loans, and book debts, including unencumbered fixed deposits, as specified in the debenture trust deed and deed of hypothecation. The NCDs are proposed to be listed on the Wholesale Debt Market of the Bombay Stock Exchange (BSE).

The issuance complies with SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD/PoD2/I/3762/2026 dated January 30, 2026. There are no reported delays in payment of interest or principal for more than three months, nor any defaults. The company confirmed that there are no cancellations or terminations related to this issuance proposal. Saurabh Sharma, Company Secretary and Compliance Officer, signed the intimation letter submitted to both the National Stock Exchange of India Limited and BSE Limited on July 30, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE216P01012/01840317395a4ef0.pdf