Purple Finance Limited has successfully completed the allotment of subordinated non-convertible debentures worth ₹5.00 crores, marking the execution of its previously approved capital raising initiative. The Finance Committee had earlier approved comprehensive debenture issuances totaling ₹30.00 crores along with a strategic portfolio sale transaction.

Completed Debenture Allotment

The Finance Committee approved through circular resolution the allotment of 500 subordinated, unsecured, unrated, unlisted, redeemable, transferable, INR denominated, non-convertible debentures to Mr. Anil Prithviraj Kumar. The allotment was completed on January 06, 2026.

Original Debenture Issuance Framework

The Finance Committee had previously approved two distinct debenture offerings on a private placement basis totaling ₹30.00 crores:

Interest and Repayment Structure

The completed subordinated debentures offer monthly interest payments at 12.50% per annum. The principal amount will be fully redeemed at par on the final redemption date of February 06, 2031. These debentures are unsecured and will be listed on BSE Limited in due course.

The senior secured debentures, when issued, will be backed by a first ranking pari passu charge over identified book debts and loan receivables. In case of payment default, an additional 2.00% per annum will be charged over the outstanding principal amount.

Portfolio Sale Transaction

Alongside the debenture program, the committee had approved the sale of a loan portfolio worth ₹8.66 crores to Vaastu Housing Finance Corporation Limited under a Direct Assignment arrangement.

The company maintains that this Direct Assignment transaction will be income accretive and demonstrates its ability to create quality loan portfolios while continuing operational involvement through loan servicing.

Purple Finance Limited , a financial services company, has announced a significant portfolio sale to IDFC First Bank Limited. The transaction, approved by the company's Finance Committee on December 4, 2025, involves the sale of a portion of Purple Finance's loan portfolio under Direct Assignment terms, in compliance with Reserve Bank of India (RBI) regulations.

Transaction Details

• Sale Amount: Rs. 17,37,17,439 (Rs. 17.37 crores)
• Buyer: IDFC First Bank Limited
• Transaction Type: Direct Assignment
• Proportion: 90:10 (IDFC:Purple)
• Servicer: Purple Finance Limited (for all loans sold in this arrangement)

This strategic move by Purple Finance Limited is expected to be income accretive and demonstrates the company's ability to create a high-quality loan portfolio. The transaction adheres to the Master Directions - Reserve Bank of India (Transfer of Loan Exposures) Directions 2021, as amended from time to time.

Financial Implications

The sale of this portfolio segment may have implications for Purple Finance's balance sheet. Based on the most recent financial data available:

All figures in Rs. crores

The significant growth in Total Assets and Current Assets over the past year suggests that Purple Finance has been expanding its portfolio. This recent sale of Rs. 17.37 crores worth of loans represents a strategic decision to manage this growth and potentially improve liquidity.

Market Implications

This transaction highlights several key points about Purple Finance Limited's business strategy:

1. Portfolio Management: The company is actively managing its loan portfolio, potentially to optimize its risk profile or to free up capital for new lending opportunities.

2. Strategic Partnerships: The deal with IDFC First Bank indicates Purple Finance's ability to forge partnerships with established banking institutions.

3. Regulatory Compliance: The adherence to RBI guidelines underscores the company's commitment to operating within the regulatory framework.

4. Servicing Capabilities: By retaining the servicing rights for the sold loans, Purple Finance maintains a connection with the borrowers and continues to generate fee income.

As the financial services sector continues to evolve, such strategic moves by companies like Purple Finance Limited warrant attention from investors and market analysts. The impact of this transaction on the company's future financial performance and market position will be an area to watch in the coming quarters.