Satin Creditcare Network Limited , a prominent player in the microfinance sector, has announced plans to raise funds through the issuance of non-convertible debentures (NCDs). The company aims to secure a minimum of ₹50 crore through this private placement, with an additional greenshoe option of ₹25 crore.

Key Details of the NCD Issue

Issue Specifics

The Working Committee of Satin Creditcare's Board of Directors approved the terms and conditions for the NCD issuance on July 14, 2025. The company plans to issue 5,000 debentures, each with a face value of ₹1 lakh, totaling ₹50.00 crore. The greenshoe option allows for an additional 2,500 debentures, potentially increasing the total issue size to ₹75.00 crore.

Listing and Placement

These NCDs are set to be listed on the BSE Limited, enhancing their liquidity and tradability. The company has opted for a private placement route, targeting institutional investors for this fundraising initiative.

Financial Implications

The high interest rate of 11.50% reflects the current market conditions and the company's strategy to attract investors. This move is likely aimed at strengthening Satin Creditcare's capital base and supporting its lending operations in the microfinance sector.

Investor Considerations

For potential investors, key points to note include:

• Monthly interest payments, providing regular income
• Unsecured nature of the debentures
• 66-month lock-in period until maturity
• Listing on BSE, offering potential liquidity

Company's Perspective

While the company has not provided specific details on the use of funds, such capital raising exercises are typically undertaken to support business growth, strengthen the balance sheet, or refinance existing debt.

This NCD issue represents a significant move by Satin Creditcare Network to raise capital in the current financial landscape. The success of this issue could be an indicator of investor confidence in the company's business model and growth prospects in the microfinance sector.

Satin Creditcare Network Limited (SCNL), a prominent player in the microfinance sector, has made a significant move in the debt market. The company's Working Committee of the Board of Directors has approved the issuance of Non-Convertible Debentures (NCDs) worth ₹500 crore, marking a strategic step in its financial planning.

Key Details of the NCD Issuance

• Issue Size: ₹500.00 crore
• Number of NCDs: 5,000
• Face Value: ₹1,00,000 per debenture
• Type: Subordinated, unsecured, rated, listed, taxable, redeemable, and transferable
• Listing: To be listed on BSE Limited

Additional Features

• Green Shoe Option: The issuance includes a green shoe option of up to ₹250.00 crore (2,500 additional NCDs)
• Tenure: 66 months from the Deemed Date of Allotment
• Allotment Date: July 21, 2025 (Deemed Date of Allotment)
• Maturity Date: January 21, 2031
• Interest Rate: 11.50% per annum, payable monthly

Purpose and Implications

This NCD issuance is likely aimed at strengthening Satin Creditcare's capital base and supporting its lending operations. The decision to opt for unsecured debentures indicates the company's confidence in its financial position and market standing.

Investor Considerations

Potential investors should note that these NCDs are unsecured, meaning they are not backed by any specific assets of the company. However, the high interest rate of 11.50% per annum may be attractive to those seeking regular income.

Regulatory Compliance

The company has adhered to the regulatory requirements by disclosing the details as per the SEBI guidelines. This transparency is crucial for maintaining investor trust and complying with listing obligations.

Satin Creditcare Network's move to raise funds through NCDs reflects the company's proactive approach to capital management and its commitment to exploring diverse funding avenues. As the microfinance sector continues to evolve, such financial strategies could play a pivotal role in supporting growth and operational expansion.