Poonawalla Fincorp , a prominent player in India's financial services sector, has successfully raised ₹350 crore through the issuance of non-convertible debentures (NCDs). This strategic move underscores the company's efforts to strengthen its capital base and support its growth initiatives.

Debenture Details

The company has allotted 35,000 secured, redeemable, rated, listed, non-convertible debentures with a face value of ₹1,00,000 each. These debentures, designated as PFL NCD Series 'E1' FY2025-26, were issued through private placement and carry an interest rate of 7.52% per annum.

Issue Structure

The NCD issuance comprised a base size of ₹150 crore with a green shoe option of ₹200 crore, which was fully exercised, bringing the total issue size to ₹350 crore. This oversubscription reflects strong investor confidence in Poonawalla Fincorp's financial stability and growth prospects.

Key Features

• Tenure: The debentures have a tenure of 2 years and 6 months, maturing on February 25, 2028.
• Listing: The NCDs will be listed on the Debt Market Segment of BSE Limited, enhancing their liquidity and tradability.
• Security: The debentures are secured by a first ranking pari passu charge on hypothecated properties, providing additional comfort to investors.

Interest Payment and Default Provisions

Poonawalla Fincorp has outlined clear terms for interest payments and potential defaults:

• Regular interest payments will be made as per the schedule detailed in the Key Information Document dated August 22, 2025.
• In the event of a payment delay exceeding three months, the company will pay an additional 2% over the applicable coupon rate until the default is resolved.

Regulatory Compliance

The company has duly informed the stock exchanges about this issuance, in compliance with Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The allotment was approved by the Finance Committee, as authorized by the Board of Directors of Poonawalla Fincorp.

This successful NCD issuance demonstrates Poonawalla Fincorp's ability to tap into debt markets effectively, potentially supporting its lending activities and overall business growth in the coming years.

Poonawalla Fincorp Limited , a prominent player in the financial services sector, has successfully raised ₹500 crore through a private placement of secured, rated, non-convertible debentures (NCDs). This strategic move is expected to bolster the company's financial position and support its growth initiatives.

Key Details of the NCD Issuance

The Finance Committee of Poonawalla Fincorp, as authorized by the Board of Directors, approved the issuance of these NCDs. The debentures have been structured with the following characteristics:

• Issue Size: Base issue of ₹150 crore with a green shoe option to retain oversubscription up to ₹350 crore, totaling ₹500 crore
• Face Value: ₹1,00,000 per NCD
• Listing: Proposed to be listed on BSE Limited
• Series: PFL Series 'E1'
• Security: First ranking pari passu charge on the Hypothecated Properties

Purpose and Implications

While the specific use of proceeds was not disclosed, such fundraising efforts typically aim to:

1. Strengthen the company's capital base
2. Support lending activities
3. Refinance existing debt
4. Fund expansion plans

The successful placement of these NCDs demonstrates investor confidence in Poonawalla Fincorp's business model and growth prospects. It also reflects the company's ability to access diverse funding sources in the current market environment.

Market Position

Poonawalla Fincorp, formerly known as Magma Fincorp, has been focusing on retail and small business lending since its acquisition by the Poonawalla Group. This fundraise is likely to support the company's strategy of expanding its loan book and market presence in the financial services sector.

Investor Perspective

For investors, the issuance of secured NCDs by a reputable financial institution like Poonawalla Fincorp presents an opportunity for stable returns. The security feature and the company's strong parentage add layers of comfort for debt investors.

As the financial services landscape continues to evolve, Poonawalla Fincorp's latest fundraising initiative positions it well to capitalize on growth opportunities and navigate market challenges.

Note: Investors are advised to review the detailed terms and conditions of the NCD issuance and consult financial advisors before making investment decisions.