TruCap Finance Limited (TFL), formerly known as Dhanvarsha Finvest Limited, has faced a significant setback as Infomerics Ratings downgraded its credit rating to 'IVR D' from 'IVR C/Negative' for bank facilities totaling Rs 185.00 crore. This downgrade comes in the wake of TFL's default on principal repayments and interest payments across multiple lenders.

Default Details

The company defaulted on the following obligations:

The unlisted Non-Convertible Debenture (NCD) was issued to Incred Credit Opportunities Fund, out of a total NCD issuance of Rs 35.00 crore.

Financial Position

TruCap Finance's financial position appears precarious:

These figures underscore the significant refinancing risks and ongoing liquidity constraints faced by the company.

Rating Rationale

Infomerics Ratings cited the following reasons for the downgrade:

1. Default on repayment obligations across multiple lenders
2. Ongoing liquidity constraints
3. Elevated repayment obligations

The rating agency noted that TFL's ability to meet its debt obligations timely continues to depend on the availability of external funding support.

Path to Rating Upgrade

For a potential rating upgrade, Infomerics specified that TruCap Finance would need to demonstrate timely debt servicing for a minimum of 90 days.

Company Background

TruCap Finance Limited, an RBI-registered NBFC, has been in operation since 1994. The company underwent a management change in June 2017 when the Wilson Group took over. It's worth noting that the company changed its name from Dhanvarsha Finvest Limited to TruCap Finance Limited effective August 4, 2022.

Financial Performance

Recent financial data reveals challenges for TruCap Finance:

The significant loss in FY 2025 and the increase in NPAs indicate deteriorating financial health.

This credit rating downgrade and default event highlight the challenges facing TruCap Finance Limited. Investors and stakeholders will be closely watching the company's efforts to address its liquidity issues and meet its debt obligations in the coming months.

TruCap Finance Limited has successfully completed its final payment obligations on non-convertible debentures (NCDs), marking the end of a delayed repayment process. The company made its last payments on September 23, 2025, covering the remaining 30% of the principal along with interest.

Payment Details

The repayment covered six ISIN series of NCDs with a total issue size of Rs. 89.49 crores. Here's a breakdown of the payments:

Repayment Timeline

TruCap Finance made the payments in multiple tranches between July 18 and September 23, 2025. This extended repayment period came after the company experienced delays due to liquidity stress and non-receipt of committed funds. The original due date for redemption was July 16, 2025, indicating a delay of over two months.

Financial Implications

With these final payments, TruCap Finance has fully discharged its payment obligations for these listed NCDs. The company's outstanding amounts for these particular debentures now stand at zero, potentially improving its financial standing and credibility with investors.

Liquidity Challenges

The delayed payments highlight the liquidity challenges faced by TruCap Finance. The company's need to make payments in multiple tranches over an extended period suggests it encountered difficulties in meeting its debt obligations on time. This situation underscores the importance of robust liquidity management for financial institutions, especially those dealing with significant debt instruments like NCDs.

Investor Impact

For investors holding these NCDs, the completion of payments brings closure to a period of uncertainty. While the delay may have caused concern, the full repayment of both principal and interest should provide some reassurance. However, the experience may prompt investors to closely monitor the company's financial health and liquidity position in the future.

TruCap Finance's ability to eventually meet its obligations, despite the delay, demonstrates its commitment to fulfilling its financial responsibilities. However, the liquidity stress that led to the payment delays may warrant attention from both investors and financial analysts in assessing the company's future prospects and financial stability.