Purple Finance Limited's board of directors convened on March 24, 2026, to address significant business developments and approve major financial initiatives. The comprehensive board meeting resulted in approval of substantial fundraising through non-convertible debentures and strategic portfolio monetization.

NCD Issuance Approval

The board has approved the issuance of up to 25,000 Senior, Secured, Rated, Listed, Redeemable, Transferable, INR Denominated, Non-Convertible Debentures (NCDs). These debentures will be issued on a private placement basis in one or more tranches.

The NCDs will carry a 12% per annum interest rate payable monthly, with the principal amount to be repaid in six installments over the 24-month tenure. The debentures will be secured by first ranking pari passu charge over identified book debts and loan receivables of the company.

Portfolio Sale Under Direct Assignment

The board has also approved the sale of part of its portfolio worth up to ₹37.93 crores under Direct Assignment, in accordance with Reserve Bank of India (Non-Banking Financial Companies - Transfer and Distribution of Credit Risk) Directions, 2025. This transaction is expected to be income accretive and demonstrates the company's portfolio creation capabilities.

Purple Finance Limited will continue to act as servicer for all loans sold under this arrangement, maintaining operational involvement in the transferred portfolio.

Governance and Compliance Framework

The board has delegated powers to the Finance Committee, a sub-committee of the Board of Directors, for deciding all terms and conditions related to the NCD issuance and connected matters. The NCD issuance will remain within the current borrowing limits applicable under Section 180(1)(c) of the Companies Act, 2013.

Company Secretary and Compliance Officer Ruchi Nishar has ensured all regulatory disclosures under Regulation 30 and Regulation 51(2) of SEBI LODR Regulations are completed. The board meeting commenced at 12:35 PM and concluded at 1:30 PM, with comprehensive deliberations on both strategic initiatives.

Security Structure and Risk Management

The NCDs will feature robust security arrangements including hypothecation over identified book debts and loan receivables. In case of payment default, additional interest at 2% per annum over the base interest rate will be applicable on outstanding principal amounts until the default is cured or debentures are fully redeemed.

Purple finance Limited has announced the redemption of unsecured non-convertible debentures worth Rs 2,00,00,000 on March 18, 2026. The company informed BSE Limited about this corporate action through a regulatory filing under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Debenture Redemption Details

The redemption involved 200 unsecured, redeemable, unlisted non-convertible debentures (NCDs) from the company's existing issuance. The key parameters of the redeemed debentures are presented below:

Original Issuance Context

The redeemed debentures were part of a larger issuance of 500 NCDs that were originally allotted on July 19, 2024. All debentures were issued at par value to M/s M. K. Investment Consultancy Private Limited. The current redemption represents a partial repayment of the total debenture obligation.

Redemption Terms

The company executed the redemption at par value, meaning debenture holders received the full face value of Rs 1,00,000 per debenture. Additionally, applicable interest was paid along with the principal redemption amount, ensuring complete settlement of the debenture obligations for the redeemed instruments.

Regulatory Compliance

Purple Finance Limited has fulfilled its disclosure obligations by informing BSE Limited about the redemption through proper regulatory channels. The notification was made pursuant to Regulation 30 of SEBI (LODR) Regulations and Schedule III Part A Para A Point 2, demonstrating the company's commitment to transparent corporate governance and regulatory compliance.

The redemption leaves 300 NCDs outstanding from the original issuance of 500 debentures, representing a remaining obligation of Rs 3,00,00,000 to the debenture holder.