Financial Horsepower Incoming—Poonawalla’s NCD Issue Packs a ₹1,600 Cr Punch

Image Source: The Economic Times

Poonawalla Fincorp Ltd. (NSE: POON.NS) said it plans to issue non-convertible debentures (NCDs) worth up to ₹1,600 crore as part of its on-going consolidation efforts to diversify funding sources and propel its expanding digital lending business.

The NCDs will be secured, rated, listed, and redeemable and are most likely to be issued on private placement basis. The money raised will be used to grow the company's lending book, i.e., the MSME and consumer finance books, wherein Poonawalla Fincorp has seen high demand.

This follows the launch last week by the company of Business Loan 24/7, a fully digital MSME credit facility that leverages India's public digital infrastructure and advanced risk analytics to make credit for small businesses easier.

Poonawalla Fincorp, a non-deposit-taking NBFC sponsored by the Cyrus Poonawalla Group, has been restructuring its book continuously on lines of tech-enabled, risk-calibrated lending. Issue of NCDs is expected to enhance its liquidity profile and capital adequacy further.

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