Can Fin Homes Unlocks ₹100 Billion via NCDs—India’s Mortgage Engine Just Got Louder

Can Fin Homes Ltd, a prominent player in India’s housing finance sector, has announced a major capital-raising initiative aimed at strengthening its financial base and expanding its lending operations. The company’s Board of Directors has approved a proposal to raise up to ₹100 billion (₹10,000 crore) through non-convertible debentures (NCDs), subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for August 20, 2025.

This move is part of a broader ₹110 billion fundraising strategy, which also includes ₹10 billion to be raised via equity instruments such as Qualified Institutional Placement (QIP), rights issues, or preferential allotments. The capital will be used to support Can Fin Homes’ long-term growth plans, meet regulatory requirements, and enhance its operational capabilities.

Key Highlights of the Fundraising Plan
Debt Instrument Strategy

Can Fin Homes plans to raise ₹100 billion through onshore and offshore debt instruments.

These include bonds, NCDs, and subordinated debt in the nature of Tier II capital.

Instruments may be denominated in Indian or foreign currency, offering flexibility in sourcing funds.

Equity Component

An additional ₹10 billion will be raised through equity channels such as QIP, rights issues, or preferential allotments.

This equity infusion will complement the debt raise and provide financial leverage for future expansion.

Shareholder Approval

Both proposals will be presented at the AGM on August 20, 2025.

Shareholder consent is required before the company can proceed with the issuance.

Strategic Objectives Behind the Capital Raise
Strengthening the Capital Base

The ₹100 billion NCD issuance will significantly boost Can Fin Homes’ capital reserves.

It will help the company maintain a healthy capital adequacy ratio and meet regulatory norms.

Expanding Lending Operations

The funds will be deployed to grow the company’s loan book, particularly in the affordable housing segment.

Can Fin Homes aims to deepen its presence in Tier 2 and Tier 3 cities, catering to salaried and middle-income borrowers.

Optimizing Cost of Funds

The company has already shifted a large portion of its bank borrowings to repo rate and Treasury bill-linked benchmarks.

This transition has helped reduce funding costs, and the NCD route is expected to further optimize capital efficiency.

Enhancing Liquidity and Risk Management

The capital raise will improve liquidity buffers and enable better risk management.

It positions Can Fin Homes to navigate market fluctuations and interest rate cycles more effectively.

Business Outlook and Dividend Declaration
Dividend Announcement

Can Fin Homes has declared a final dividend of ₹6 per equity share for the fiscal year ending March 31, 2025.

The record date for dividend eligibility has been set as July 11, 2025.

Governance Update

The company has appointed Swarupananda Mallick as an Additional Independent Director for a three-year term starting August 21, 2025.

His appointment is also subject to shareholder approval at the AGM.

Market Sentiment and Investor Watch
Investor Response

The announcement has drawn attention from institutional investors and market analysts.

The scale and structure of the capital raise are expected to influence Can Fin Homes’ stock performance in the coming quarters.

Credit Profile and Ratings

Analysts suggest that the debt-heavy approach may be favorable given current interest rate trends and the company’s strong credit standing.

The NCD issuance is likely to be well-received in both domestic and international debt markets.

Sources: CNBC TV18, MarketScreener, Bajaj Broking