Purple Finance Limited's Finance Committee has approved significant capital raising initiatives and a strategic portfolio transaction. The decisions encompass debenture issuances worth ₹30 crores and a portfolio sale arrangement that reinforces the company's financial strategy.

Debenture Issuance Details

The Finance Committee approved two distinct debenture offerings on a private placement basis:

Interest and Repayment Structure

Both debenture series offer monthly interest payments with different principal repayment mechanisms. The senior secured debentures will be repaid in six installments with final payment on maturity date, while the subordinated debentures will be fully redeemed on the final redemption date.

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

Portfolio Sale Transaction

The committee approved the sale of a loan portfolio worth ₹8.66 crores to Vaastu Housing Finance Corporation Limited under a Direct Assignment arrangement. This transaction structure follows Reserve Bank of India guidelines for Non-Banking Financial Companies regarding transfer and distribution of credit risk.

The company stated that this Direct Assignment transaction will be income accretive and reaffirms its ability to create quality loan portfolios. Purple Finance will maintain its operational involvement by continuing to service all loans sold under this arrangement.

The Finance Committee's approvals were made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and related SEBI circulars.

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.