Poonawalla Fincorp Limited has successfully raised ₹3,002.10 crore through the issuance of non-convertible debentures (NCDs) via private placement. The company allotted 300,000 secured, redeemable, rated, listed NCDs with a face value of ₹100,000 each on October 15, 2025.

Debenture Details

The NCD issuance comprises two series:

Security and Listing

The debentures are secured by a first ranking pari passu charge on hypothecated properties, providing the required security cover. They will be listed on the debt market segment of the BSE Limited.

Default Clause

In the event of a payment delay exceeding three months, Poonawalla Fincorp has committed to pay an additional 2% over the applicable coupon rate until the default is resolved.

Corporate Governance

The allotment was approved by the Finance Committee, as authorized by the Board of Directors, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This move demonstrates Poonawalla Fincorp's proactive approach to capital management and its ability to tap into debt markets for funding.

This significant fundraising through NCDs indicates Poonawalla Fincorp's strong position in the debt market and investor confidence in the company's financial stability. The successful issuance may provide the company with additional capital for its operations and potential growth initiatives in the coming years.

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.