Aavas Financiers Ltd approved issuance of non-convertible debentures worth ₹9.75 billion via private placement. The funds will boost lending capacity, enhance liquidity, and diversify funding sources. Analysts see the move as a strategic step to sustain growth in affordable housing finance and strengthen Aavas’ capital structure.
Aavas Financiers Ltd, a leading housing finance company, has announced that its board has approved the issuance of non-convertible debentures (NCDs) worth ₹9.75 billion. The fundraising initiative underscores the company’s strategy to strengthen its capital base and support its expanding loan portfolio.
Fundraising Approval
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The board sanctioned the issuance of NCDs aggregating to ₹9.75 billion.
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The debentures will be raised through private placement, targeting institutional investors.
Purpose of Issue
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Funds will be deployed to augment lending capacity, particularly in affordable housing finance.
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The move is expected to improve liquidity and diversify funding sources beyond traditional bank borrowings.
Strategic Impact
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Analysts view the approval as a proactive step to sustain growth momentum in India’s housing finance sector.
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The issuance strengthens Aavas’ ability to cater to underserved segments, aligning with its mission of enabling home ownership for middle- and lower-income families.
This development highlights Aavas Financiers’ commitment to prudent capital management while reinforcing its role in India’s affordable housing ecosystem.
Sources: Business Standard, Economic Times, Moneycontrol