Poonawalla Fincorp Limited, a prominent player in the financial services sector, has successfully raised ₹1,000 crore through the issuance of non-convertible debentures (NCDs). This strategic move, approved by the company's Finance Committee on September 10, 2025, marks a significant step in bolstering the firm's financial position.

Key Details of the NCD Issuance

Security and Repayment Terms

The debentures are secured by a first ranking pari passu charge on hypothecated properties, providing a robust security structure for investors. This move aligns with Poonawalla Fincorp's commitment to maintaining a strong balance sheet while diversifying its funding sources.

In the event of payment delays exceeding three months, the company has agreed to pay an additional 2% over the applicable coupon rate until the default is resolved. This provision offers an extra layer of assurance to investors, underlining the company's commitment to timely repayments.

Strategic Implications

This successful NCD issuance demonstrates Poonawalla Fincorp's strong market position and investor confidence in its business model. The funds raised are likely to be utilized for expanding the company's lending activities, refinancing existing debt, or supporting general corporate purposes.

Regulatory Compliance

The allotment of these NCDs is in compliance with the Securities and Exchange Board of India (SEBI) regulations. As per the disclosure made under Regulation 30 and 51 of the SEBI Listing Obligations and Disclosure Requirements, the company has ensured transparency in this financial transaction.

Poonawalla Fincorp's ability to secure funding at a competitive rate of 7.58% in the current market environment speaks to its strong credit rating and financial health. This move is expected to contribute positively to the company's growth trajectory in the coming years.

Poonawalla Fincorp , a prominent player in the financial services sector, has made a significant move in the debt market. The company has given the green light for a private placement of Non-Convertible Debentures (NCDs) with a maximum value of ₹1500.00 crore. This strategic decision marks a substantial debt fundraising initiative through the private placement route.

Key Points of the NCD Approval

• Maximum Value: The approved NCDs have a ceiling of ₹1500.00 crore.
• Issuance Method: The company has opted for a private placement route for this debt instrument.
• Instrument Type: Non-Convertible Debentures (NCDs), which are fixed-income debt securities.

This move by Poonawalla Fincorp indicates the company's intent to bolster its financial position, potentially to fund growth initiatives or refinance existing debt. NCDs are often favored by companies for their ability to raise substantial capital without diluting equity.

Company's Upcoming Investor Engagements

In a related development, Poonawalla Fincorp has also announced its schedule for upcoming analyst and institutional investor meetings. According to the company's latest disclosure:

The company has stated that the presentation for this event will be available on their official website at www.poonawallafincorp.com . This engagement with investors in London suggests Poonawalla Fincorp's efforts to maintain transparency and potentially attract international investment interest.

Implications and Outlook

The approval of the NCD private placement, coupled with the scheduled investor meet in London, demonstrates Poonawalla Fincorp's proactive approach to capital management and investor relations. The substantial size of the NCD placement (up to ₹1500.00 crore) could provide the company with significant financial flexibility for its future plans.

As the financial services landscape continues to evolve, Poonawalla Fincorp's strategic moves in debt fundraising and international investor outreach may position it favorably in the competitive market. Investors and market watchers will likely keep a close eye on how the company utilizes this potential influx of capital and the outcomes of its international investor engagements.

Note: The company has advised that the schedule for the investor meet may be subject to change due to unforeseen circumstances.