HDB Financial Services Limited , a prominent player in the financial services sector, has successfully raised Rs 460 crore through the allotment of Non-Convertible Debentures (NCDs) on a private placement basis. This strategic move, announced on November 11, 2025, demonstrates the company's proactive approach to capital management and liquidity enhancement.

Key Details of the NCD Allotment

The allotment comprises two tranches of secured redeemable NCDs, each with a face value of Rs 1,00,000. Here's a breakdown of the allotment:

Security and Listing

The NCDs are secured by a first and exclusive charge through hypothecation over the company's present and future receivables. HDB Financial Services has committed to maintaining a minimum asset cover of 1.0 times the principal outstanding and accrued interest throughout the tenure of the NCDs.

The company plans to list these debentures on the Wholesale Debt Market Segment of BSE Limited, potentially enhancing their liquidity and tradability.

Payment Schedule

The payment schedule for coupon/interest and principal varies for each tranche:

• Tranche 1: Payments scheduled for August 04, 2026, August 04, 2027, and at maturity on August 04, 2028.
• Tranche 2: Annual payments from October 23, 2026, to October 23, 2029, with final payment at maturity on October 04, 2030.

Implications and Outlook

This successful NCD allotment underscores HDB Financial Services' strong market position and investor confidence. By diversifying its funding sources, the company aims to optimize its capital structure and support its growth initiatives.

The staggered maturity profile of the NCDs also indicates a prudent approach to managing debt obligations, aligning them with the company's long-term financial strategy.

As the financial services landscape continues to evolve, HDB Financial Services' ability to raise capital through such instruments positions it well to capitalize on emerging opportunities and navigate market challenges.

Investors and market watchers will likely keep a close eye on how the company utilizes these funds and its impact on future financial performance and market standing.

HDB Financial Services , a non-banking financial company (NBFC), has successfully raised ₹250 crore through the issuance of secured redeemable non-convertible debentures (NCDs). This move highlights the company's strategic approach to diversifying its funding sources and optimizing its capital structure.

Key Details of the Debenture Issue

Interest Payment Schedule

The interest on these debentures will be paid annually on October 23 for the years 2026, 2027, 2028, and 2029. The final payment of interest and principal will be made on the maturity date, October 04, 2030.

Security and Asset Cover

To secure these debentures, HDB Financial Services has created a first and exclusive charge by way of hypothecation over its present and future receivables. The company is required to maintain a minimum asset cover of 1.0 times the principal outstanding and accrued interest throughout the tenure of the NCDs.

Implications for Investors

This debenture issue provides investors with an opportunity to invest in a secured debt instrument from a reputable NBFC. The 7.33% interest rate offers a competitive return in the current market environment, especially considering the five-year tenure of the investment.

For HDB Financial Services, this successful fundraising demonstrates the company's ability to tap into the debt markets and secure long-term funding. It also reflects investor confidence in the company's financial stability and growth prospects.

As the financial services sector continues to evolve, such debt issuances play a crucial role in providing companies like HDB Financial Services with the capital needed to support their lending activities and expand their operations.