Poonawalla Fincorp Limited has approved the issuance of unsecured, redeemable, rated, listed, subordinated, non-convertible debentures constituting Tier II capital for an aggregate amount of ₹200 crore. The Finance Committee, authorized by the Board of Directors, sanctioned the private placement on August 18, 2026.

The issue is structured with a base size of ₹150 crore and includes a green shoe option to retain oversubscription up to ₹50 crore. The securities will be issued in dematerialized form under PFL NCD Series ‘SDA1’ FY2026-27 Re-issuance-II.

Issue Structure

The company plans to list the NCDs on BSE Limited. Each debenture carries a face value of ₹1,00,000, resulting in the issuance of 20,000 units if the full oversubscription option is exercised.

Terms and Conditions

Specific details regarding the tenor, coupon rate, payment schedule, and redemption dates are to be disclosed in the key information document. The debentures are unsecured and subordinated in nature.

In the event of a delay in payment of interest or principal for more than three months from the due date, the company is obligated to pay a penalty coupon. This penalty amounts to 2% over and above the applicable coupon rate for the period until the default is cured to the satisfaction of the Debenture Trustee.

Poonawalla Fincorp has allotted ₹315 crore worth of secured, redeemable, rated, and listed non-convertible debentures (NCDs) through private placement. The Finance Committee, acting under Board authorization, sanctioned the allotment on August 17, 2026. This issuance represents the initial realization of the company's broader ₹750 crore NCD program approved earlier in August, strengthening its liquidity position with a secured instrument backed by tangible assets.

The allotment consists of 31,500 debentures with a face value of ₹1,00,000 each, designated as PFL NCD Series E1 FY2026-27. While the total authorized issue size remains up to ₹750 crore (comprising a ₹250 crore base and a ₹500 crore green shoe option), this specific tranche raises ₹315 crore. The securities are issued in dematerialized form and will be listed on BSE Limited.

Key allotment terms

The following table outlines the key parameters of the NCD allotment:

The obligations under these debentures are secured by a first ranking pari passu charge on hypothecated properties sufficient to provide the required security cover until the redemption date. The tenor of 914 days provides a medium-term funding horizon for the NBFC.

Investor protections

To safeguard investor interests, the company has instituted a penalty mechanism for payment delays. If there is a default in paying interest or principal for more than three months from the due date, Poonawalla Fincorp must pay a coupon at a rate of 2% over and above the applicable coupon rate. This penalty applies for the duration of the delay until the event of default is cured to the satisfaction of the Debenture Trustee, acting on instructions from debenture-holders.

Regulatory compliance

The disclosure was made pursuant to Regulation 30 and Regulation 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shabnum Zaman, Company Secretary of Poonawalla Fincorp Limited, signed the filing submitted to both BSE Limited and National Stock Exchange of India Limited.