Arman Financial Services has announced its plans to raise funds through the issuance of listed Non-Convertible Debentures (NCDs) scheduled for January 19, 2025. This move represents the company's strategic initiative to access debt capital markets for its funding requirements.

Fund Raising Initiative

The company has opted for NCDs as its preferred instrument for capital raising. Non-Convertible Debentures are debt securities that cannot be converted into equity shares and typically offer fixed returns to investors. The listing of these NCDs will provide liquidity to investors by enabling trading on stock exchanges.

Market Implications

The timing of the NCD issuance on January 19 positions Arman Financial Services to tap into the debt capital markets early in the year. Listed NCDs offer investors an alternative fixed-income investment option while providing the company with access to institutional and retail funding sources.

The announcement reflects the company's approach to diversifying its funding mix through debt instruments that can be traded in the secondary market, potentially attracting a broader investor base compared to traditional private placements.

Arman Financial Services Limited has announced that Acuité Ratings & Research Limited has reaffirmed the company's credit rating while revising its outlook. The development was communicated to BSE Limited on January 10, 2026, under regulatory compliance requirements.

Credit Rating Details

According to the press release dated February 28, 2025, Acuité Ratings has reaffirmed the credit rating for both Arman Financial Services and its material subsidiary Namra Finance Limited. The rating details are as follows:

Reasons for Outlook Revision

The rating agency cited specific concerns that led to the outlook revision from 'Stable' to 'Negative'. The primary factors include moderate profitability levels and rising credit costs that are impacting the company's asset quality. These challenges reflect operational pressures faced by the financial services provider.

Industry Context

The outlook revision is not solely based on company-specific factors. Acuité Ratings noted that broader trends in the Microfinance (MFI) industry have also influenced this decision. This suggests that the challenges faced by Arman Financial Services are part of wider sectoral headwinds affecting microfinance institutions.

Regulatory Compliance

The company filed this disclosure under multiple SEBI regulations, including Regulation 30, 51, and 55 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The management explained that the delay in submission was due to an intervening weekend, with the disclosure being made on the following Monday. The company has committed to keeping stock exchanges informed of relevant compliances going forward.