Poonawalla Fincorp Ltd will raise ₹7.5 billion via non-convertible debentures (NCDs) to strengthen its funding base. The move supports retail lending expansion and offers investors fixed returns. The issuance highlights NBFCs’ reliance on debt instruments to diversify funding and meet India’s rising credit demand.
Poonawalla Fincorp Ltd, a leading non-banking financial company (NBFC), has announced plans to issue non-convertible debentures (NCDs) aggregating up to ₹7.5 billion. The move is part of the company’s strategy to strengthen its funding base and diversify borrowing sources, ensuring long-term capital availability for its expanding retail lending operations.
The NCDs, which are debt instruments that cannot be converted into equity shares, will provide investors with fixed returns while enabling Poonawalla Fincorp to secure stable financing. Market experts note that such issuances are common among NBFCs to balance liquidity and meet growing credit demand.
Key Highlights
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Fundraising Size: Up to ₹7.5 billion through NCD issuance.
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Instrument Type: Non-convertible debentures offering fixed returns to investors.
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Strategic Purpose: Strengthening capital structure and supporting retail lending growth.
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Market Context: NBFCs increasingly rely on NCDs to diversify funding amid rising credit demand.
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Investor Appeal: Provides an opportunity for investors seeking steady income from debt instruments.
Why It Matters
This issuance underscores Poonawalla Fincorp’s focus on sustainable growth and financial stability, while offering investors a reliable fixed-income option in India’s evolving debt market.
Sources: Business Standard, Moneycontrol, Economic Times