Poonawalla Fincorp to Raise Up to ₹1,500 Crore Through Private Placement of NCDs

Poonawalla Fincorp Limited has announced that its Finance Committee, acting under the authority of the Board of Directors, has approved the issuance of secured, redeemable, rated, listed, non-convertible debentures (NCDs) of face value ₹1,00,000 each. The total amount to be raised aggregates up to ₹1,500 crore through a private placement to eligible investors. This fundraising initiative is aimed at strengthening the company's financial position.

NCD Issuance DetailsParticulars

Details

Type of Issuance

Private Placement of Secured, Redeemable, Rated, Listed NCDsFace Value per NCD

₹1,00,000Total Issue Size

Up to ₹1,500 croreBase Issue Size

₹750 croreGreenshoe Option

Up to ₹750 croreListing

BSE LimitedSeries

PFL Series 'D1' FY 2025-26

Details of the NCD IssuanceThe issuance comprises 150,000 secured, redeemable, rated, listed, non-convertible debentures, each with a face value of ₹1,00,000. The aggregate amount for this Issue, designated as PFL Series 'D1' FY 2025-26, is set at up to ₹1,500 crore. This includes a base issue of ₹750 crore, with a greenshoe option to retain oversubscription up to an additional ₹750 crore. The NCDs will be issued in dematerialized form, facilitating ease of trading and holding for investors. The decision to raise funds through NCDs underscores the company's strategy to diversify its funding sources and optimize its capital structure.Key Terms and ConditionsThe specific terms regarding the coupon offered, schedule of payment of coupon/interest and principal, and the date of allotment and redemption will be as specified in the key information document. These NCDs will be secured by way of a first ranking pari passu charge on the Hypothecated Properties, which is deemed sufficient to provide the required Security Cover until the Redemption Date. This security mechanism aims to provide comfort to investors regarding the safety of their investment.Furthermore, the terms include a provision for delayed payments. In the event of a delay in payment of interest or principal amount for a period exceeding three months from the due date, or any default in payment, the Company shall pay a coupon at a rate of 2% (two percent) over and above the applicable coupon rate. This additional interest will be applicable for the period until such event of default is cured to the satisfaction of the Debenture Trustee, acting on the instructions of the Debenture-holders. This clause provides a safeguard for investors against potential payment delays.Regulatory Compliance and ListingPoonawalla Fincorp Limited has made this disclosure pursuant to Regulation 30 and 51 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The NCDs are proposed to be listed on BSE Limited, which will provide liquidity and transparency for investors. The listing process will ensure that the NCDs are traded on a recognized stock exchange, adhering to the regulatory framework for publicly listed instruments. This move is part of the company's ongoing efforts to comply with all relevant regulatory requirements and maintain transparency with its stakeholders.