Unifinz Capital Limited’s Asset Liability Management Committee approved the issuance of up to ₹50 crore worth of senior, secured, rated, listed, redeemable, taxable, transferable, non-convertible debentures (NCDs) on a private placement basis during its meeting held on August 12, 2026. The issuance includes a green shoe option of up to ₹20 crore, bringing the total potential raise to ₹70 crore if fully exercised. This capital raising move allows the company to secure long-term funding at a fixed interest cost.

The NCDs carry a face value of ₹10,000 each, with the base issue comprising 50,000 debentures. The green shoe option permits the issuance of an additional 20,000 debentures. The instruments are proposed to be listed on the Wholesale Debt Market segment of BSE Limited. The deemed date of allotment is set for August 19, 2026, with the final redemption date scheduled for November 19, 2027, resulting in a tenure of 15 months from the allotment date.

Key Terms of the Issue

Interest on the debentures is payable monthly at the fixed rate of 11.75% per annum. The principal amount will be repaid on the final redemption date. In the event of a payment default lasting more than three months, additional interest at 4% per annum above the base interest rate will be payable on the outstanding principal until the default is cured or the debentures are fully redeemed.

The issue is secured by a first-ranking exclusive and continuing charge created in favor of the debenture trustee over certain identified book debts and loan receivables of Unifinz Capital India Limited. The value of these hypothecated assets must remain at least 1.10 times the aggregate outstanding amount of the debentures from the date of allotment until full redemption. No special rights or privileges are attached to the instrument beyond those specified in the debenture trust deed.

What the Numbers Show

The decision to raise debt at an 11.75% coupon rate reflects the current cost of capital for secured debt instruments in the market for entities with similar credit profiles. By securing this funding through a private placement rather than a public offering, Unifinz Capital India Limited likely aimed to reduce issuance costs and expedite the fundraising process. The short tenor of 15 months suggests this issuance may be intended to bridge immediate liquidity needs or fund specific short-term projects rather than long-term structural expansion. The requirement to maintain collateral coverage at 1.10 times the outstanding debt provides investors with a safety buffer, mitigating credit risk associated with the underlying loan receivables.

The company filed the intimation under Regulations 30 and 51 read with Schedule III of the SEBI Listing Regulations with BSE Limited. The details were disclosed in compliance with SEBI master circulars dated January 30, 2026, and July 11, 2025, regarding listing obligations for non-convertible securities. Ritu Tomar, Company Secretary and Compliance Officer, signed the disclosure document.

Unifinz Capital Limited will convene its Asset Liability & Management Committee on Wednesday, August 12, 2026, to deliberate on a significant capital raising initiative. The primary agenda is to consider and approve the proposal for issuing Non-Convertible Debentures (NCDs) via private placement, targeting an amount not exceeding ₹1,000 crore. This move allows the NBFC to expand its debt funding base without diluting equity, supporting potential growth in its lending portfolio.

The proposal has already received preliminary approval from the Board of Directors during their meeting held on August 8, 2026. The company disclosed this development to the BSE Limited under Regulation 29 and Regulation 50 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ritu Tomar, Company Secretary and Compliance Officer, signed the intimation dated August 8, 2026.

Key Details of the Proposed Issue

The proposed fundraising activity is structured within the existing financial authority granted by the company's shareholders. The total borrowing limit for this issue remains within the overall cap approved during the Annual General Meeting held on July 2, 2026.

Regulatory Compliance and Governance

The disclosure adheres to the mandatory prior intimation requirements set forth in the SEBI LODR Regulations. By notifying the exchange before the committee meeting, Unifinz Capital ensures transparency regarding its debt management strategies. The Asset Liability & Management Committee plays a critical role in overseeing the company’s risk profile and capital structure, ensuring that new debt issuances align with long-term financial stability goals.

What the Numbers Show

The scale of the proposed ₹1,000 crore NCD issue indicates a substantial appetite for debt financing. For an NBFC, such a large quantum of non-dilutive funding typically signals confidence in future asset generation capabilities. The fact that this limit was pre-approved by shareholders in July 2026 suggests that the strategic direction for leveraging debt was established well in advance, allowing for quicker execution once market conditions or internal requirements necessitate it. Investors should monitor subsequent filings for specific coupon rates and tenor details, which will be determined closer to the actual allotment phase.