Poonawalla Fincorp Announces ₹500 Crore NCD Issue via Private Placement

Poonawalla Fincorp Limited has announced the issuance of secured, redeemable, rated, and listed non-convertible debentures (NCDs) aggregating up to ₹500 crore. The issuance will be done on a private placement basis to eligible investors and will be listed on BSE Limited. Each NCD will have a face value of ₹1,00,000, forming part of the company’s Series ‘C2’ for FY2025-26. The issuance has been approved by the company’s Finance Committee, under the authority delegated by the Board of Directors. While the specific details regarding the tenor, coupon rate, and redemption schedule have not been disclosed in this intimation, they will be provided in the Key Information Document (KID) accompanying the issuance. Importantly, the debentures will be backed by a first-ranking pari passu charge over hypothecated assets, ensuring adequate security cover for investors. Additionally, in the event of any delay in interest or principal repayment beyond three months, the company will compensate investors with an additional 2% coupon over the agreed rate until the default is cured. This structured debt issuance reinforces Poonawalla Fincorp’s focus on maintaining liquidity and diversifying its funding sources, while providing institutional investors with a secured investment opportunity.