Poonawalla Fincorp to redeem NCDs worth ₹10 crore
Poonawalla Fincorp Limited has announced the redemption of 100 unsecured, rated, non-convertible, subordinated, perpetual debentures worth ₹10 crore. The redemption is set for July 31, 2026, with a record date of July 16, 2026. The debentures carry a 12.10% coupon rate and were issued in 2016.
*this image is generated using AI for illustrative purposes only.
Poonawalla Fincorp Limited has decided to exercise the call option for 100 unsecured, rated, non-convertible, subordinated, perpetual debentures aggregating ₹10 crore. The redemption is scheduled for July 31, 2026, with the record date fixed as July 16, 2026, to determine the eligibility of debenture holders. The company has received approval from the Reserve Bank of India for the redemption of these securities.
The debentures carry a coupon rate of 12.10% per annum and were issued on a private placement basis on August 1, 2016. The instruments were listed on the wholesale debt market segment of BSE Limited. The company has informed the debenture trustee, Catalyst Trusteeship Limited, and the NCD holders regarding its intent to exercise the call option.
Details of the NCDs
The following table outlines the specifics of the debentures being redeemed:
| Nature of security | ISIN | Principal Amount | Call Premium | Record Date | Call Option Date |
|---|---|---|---|---|---|
| 12.10% Unsecured Rated, Non-Convertible, Subordinated, Perpetual Debt in the nature of Debentures | INE511C08969 | Rs. 10,00,00,000/- | N.A. | July 16, 2026 | July 31, 2026 |
Redemption Process
The redemption amount, comprising the face value and accrued interest, will be paid to debenture holders holding the NCDs as on the record date. The payment will be made by crediting the amount to the bank account linked to the demat accounts of the respective holders. Upon redemption, the NCDs will be fully extinguished, and no claims will lie against the company thereafter.
Historical Stock Returns for Poonawalla Fincorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.34% | +6.71% | +16.48% | -5.44% | -1.54% | +206.44% |
How will the redemption of these high-cost perpetual debentures impact Poonawalla Fincorp's future cost of borrowing?
Does the company plan to raise fresh capital to replace this debt, or will the redemption be funded through internal accruals?
What effect will the removal of this subordinated debt have on the company's capital adequacy ratios and overall leverage profile?
16
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
