Poonawalla Fincorp Limited, a prominent player in India's financial services sector, has made a significant move in the debt market. The company's Finance Committee has approved the issuance of non-convertible debentures (NCDs) worth ₹3,000 crore through private placement.

Key Details of the NCD Issue

Issue Structure

The NCD issue is structured in two parts:

1. PFL Series 'G1' FY 2025-26: Base issue of ₹2,500 crore
2. Re-issuance under PFL NCD Series 'D1' FY 2025-26 (INE511C07912): Base issue of ₹500 crore

Additional Features

• The NCDs will be secured, redeemable, rated, and listed.
• In case of any delay in interest or principal payment, the company will pay an additional 2% over the applicable coupon rate until the default is rectified.

Market Impact

This substantial NCD issue by Poonawalla Fincorp demonstrates the company's strategy to diversify its funding sources and potentially take advantage of the current interest rate environment. It also reflects the company's confidence in its growth prospects and ability to service debt.

For investors, this offering presents an opportunity to invest in rated, secured debt instruments from a reputable financial services company. However, potential investors should carefully review the terms and conditions, including the security cover and redemption schedule, before making any investment decisions.

Company's Disclosure

The company has made this disclosure in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements. This transparency ensures that all stakeholders are informed about significant financial decisions that could impact the company's future performance.

As the financial landscape continues to evolve, Poonawalla Fincorp's move to raise funds through NCDs underscores the importance of diverse funding strategies in the non-banking financial company (NBFC) sector. Market observers will be keen to see how the company utilizes these funds to drive growth and enhance shareholder value in the coming quarters.

Poonawalla Fincorp Limited has released its Q2 update, showcasing significant growth in its Assets Under Management (AUM). The company's performance highlights its strong position in the financial services sector.

Key Highlights

Strong AUM Growth

Poonawalla Fincorp has demonstrated impressive growth in its AUM, which reached approximately ₹47,625.00 crore. This represents a substantial year-on-year increase of 67.70% and a quarter-on-quarter growth of 15.40%. Such robust growth indicates the company's expanding market presence and successful business strategies.

Solid Liquidity Position

The company maintains a strong liquidity position of about ₹6,200.00 crore. This ample liquidity provides Poonawalla Fincorp with financial flexibility and the ability to capitalize on potential growth opportunities.

Risk Management and Business Approach

In its LODR filing, Poonawalla Fincorp emphasized its commitment to a 'risk first' approach and robust risk management systems. The company also highlighted its focus on business expansion aligned with building a long-term, sustainable, and profitable model.

Looking Ahead

As Poonawalla Fincorp continues to scale its operations, it remains committed to expanding its business while maintaining a focus on long-term sustainability and profitability. The company's diversified asset base and strong growth trajectory position it well in the competitive financial services landscape.

It's important to note that the provided financial information is provisional and subject to limited review by the company's statutory auditors.