Aavas Financiers approves ₹100 crore NCD private placement
- Aavas Financiers approves ₹100 crore NCD issue via private placement
- Instruments have a 60-month tenor with quarterly interest payments
- Principal repaid in 20 equal quarterly instalments from allotment date
- Secured by 110% charge over receivables and loans
- To be listed on BSE Wholesale Debt Market segment
*this image is generated using AI for illustrative purposes only.
Aavas Financiers has approved the issuance of Non-Convertible Debentures (NCDs) aggregating to ₹100 crore via private placement.
The Executive Committee of the Board of Directors approved the move on September 2, 2026, pursuant to authority granted by the Board on April 24, 2025, and within limits approved by shareholders at the 15th Annual General Meeting held on September 16, 2025. The issuance is in accordance with the Companies Act, 2013, SEBI LODR Regulations, and SEBI Issue and Listing of Non-Convertible Securities Regulations, 2021.
NCD issue details
The company plans to issue up to 10,000 Senior, Secured, Rated, Listed, Transferable, Redeemable Non-Convertible Debentures with a face value of ₹1,00,000 each. The instruments will carry a tenor of 60 months from the deemed date of allotment.
| Parameter | Details |
|---|---|
| Instrument | Senior, Secured, Rated, Listed, Transferable, Redeemable NCDs |
| Issue size | Up to ₹100 crore |
| Tenor | 60 months |
| Listing venue | Wholesale Debt Market (WDM) segment of BSE Limited |
| Interest payment | Quarterly from deemed date of allotment |
| Principal repayment | 20 equal quarterly instalments starting from deemed date of allotment |
| Security | First ranking exclusive charge of at least 110% over identified receivables/loans/book debts |
The coupon rate and specific dates will be identified in the Key Information Document (KID). The principal amount will be repaid in 20 equal quarterly instalments of ₹5,000 per debenture, ensuring full redemption by the end of the 60-month period.
Security structure
The NCDs are secured by a first-ranking exclusive charge of at least 110% of the aggregate principal and interest amount. This security is created via hypothecation over identified receivables, loans, book debts, and unencumbered fixed deposits, as specified in the transaction documents including the debenture trust deed and deed of hypothecation.
Aavas Financiers is a housing finance company focused on providing home loans, primarily to low- and middle-income customers in semi-urban and rural areas of India.
Historical Stock Returns for Aavas Financiers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.83% | -4.15% | -7.43% | -2.09% | -17.62% | -48.55% |
How will the 60-month tenor and quarterly repayment structure impact Aavas Financiers' liquidity management compared to its existing debt profile?
What does the reliance on private placement for this ₹100 crore raise suggest about the company's access to public debt markets or current investor sentiment?
Could the hypothecation of receivables at a 110% coverage ratio constrain Aavas's ability to leverage these assets for future financing rounds?
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