Laxmi India Finance Limited has received credit rating reaffirmation from Acuite Ratings & Research Limited, strengthening its position in the financial services sector. The rating action, completed on March 09, 2026, demonstrates the company's maintained creditworthiness and financial stability.

Rating Action Details

Acuite Ratings & Research Limited took comprehensive rating actions on the company's debt instruments. The rating agency reaffirmed ACUITE A-/Positive rating on existing bank loans and assigned the same rating to new facilities.

Non-Convertible Debentures Rating

The rating agency also reaffirmed ratings on the company's Non-Convertible Debentures across multiple ISINs. The debentures maintained their ACUITE A-/Positive rating, reflecting consistent credit quality.

Comprehensive Facility Coverage

The rating covers an extensive range of banking facilities from multiple lenders including major public sector banks, private sector banks, and non-banking financial companies. The facilities span across various instruments including term loans, cash credit, and secured overdraft facilities from institutions such as State Bank of India, Union Bank of India, IDFC First Bank Limited, and several others.

Regulatory Compliance

The company has fulfilled its regulatory obligations under SEBI LODR Regulations 30, 55, and 51. The rating letters issued on March 09, 2026, will remain valid until March 08, 2027, subject to periodic surveillance by the rating agency. The positive outlook indicates potential for rating upgrade based on the company's performance and market conditions.

The rating reaffirmation across both bank loans and debentures totaling ₹1576.86 crore in bank facilities plus debenture programs demonstrates Acuite Ratings' confidence in Laxmi India Finance's credit profile and business fundamentals.

Laxmi India Finance Limited has announced the successful allotment of non-convertible debentures worth Rs. 50 crores through its Business Operation Committee. The committee meeting held on February 24, 2026, approved the issuance under Regulation 30 and 51 of SEBI Listing Regulations, marking a significant fundraising milestone for the financial services company.

Debenture Issue Details

The allotment comprises 50,000 listed, rated, senior, secured, transferable, redeemable non-convertible debentures issued on a private placement basis through Electronic Bidding Platform (EBP). Each debenture carries a face value of Rs. 10,000, bringing the total issue size to Rs. 50,00,00,000.

Terms and Conditions

The debentures offer an attractive coupon rate of 10.50% per annum with monthly payment frequency. The instruments have a tenure of 36 months and are scheduled to mature on February 24, 2029, with redemption at par value.

Security and Listing

The NCDs are secured by a first and exclusive charge on identified receivables through hypothecation in favor of the Debenture Trustee. This security structure provides protection for debenture holders over the hypothecated assets as per the terms specified in the Term Sheet. The company has proposed to list these debentures on the Wholesale Debt segment of BSE Limited, enhancing their tradability and liquidity.

Default Protection Mechanism

In case of payment delays exceeding three months from the due date, the company has committed to pay an additional 2% above the standard interest rate. This penalty rate will apply from the date of default occurrence until the event is cured or the secured obligations are fully repaid, providing additional protection to investors.

Regulatory Compliance

The allotment was conducted in accordance with SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. IDBI Trusteeship Services Limited serves as the debenture trustee, while Acuite Ratings & Research Limited has provided the credit rating for the issue. The company has fulfilled all disclosure requirements under Regulation 30 and 51 of SEBI Listing Regulations. Company Secretary & Chief Compliance Officer Sourabh Mishra signed the regulatory filing on behalf of the company.

Source: None/Company/INE06WU01026/b7ad1ebb-9830-4768-b6a4-a4e67a327757.pdf