Cash Flow Incoming: Supra Pacific Gears Up for Growth with Fresh NCDs

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Supra Pacific Financial Services Ltd. (BSE: SPRA.BO), a non-deposit-taking non-banking finance company, approved the issue of Non-Convertible Debentures (NCDs) of up to ₹100 million. The move is made to shore up the capital base of the company to fund its growing loan book, particularly in the two-wheeler and gold loan categories.

Issue Details

Instrument: Non-Convertible Debentures (NCDs)
Aggregate Value: ₹100 million
Mode: Expected to be through private placement, as in the case of previous issuances
Purpose: To improve liquidity and increase lending ability

Company Overview

Established: 1986 (previously Montage Housing Finance Pvt. Ltd.)
Headquarters: Kerala, India
Key Products: Two-wheeler finance, gold finance, and small-ticket personal finance
Category: Non-Systemically Important Non-Deposit Taking NBFC (NBFC-ND)

Financial Highlights

FY25 AUM: ₹213.5 crore as of December 2024
Net Worth: ₹63.7 crore
Recent Capital Injection: ₹15 crore to be infused in Q4 FY25
Credit Rating: IVR BBB-/Stable (Infomerics, March 2025)

Strategic Outlook

The NCD issue is expected to provide Supra Pacific with the financial flexibility to expand operations while maintaining good asset quality. The company has registered consistent growth in AUM and expects to grow further in underserved lending opportunities.

Sources: Supra Pacific Financial Services Ltd., Screener, Zerodha