Mangal Credit and Fincorp to Consider Fundraising Proposal through Issue of Debt

Mumbai, April 8, 2025 – Mangal Credit and Fincorp Ltd, a leading non-banking financial institution (NBFC), has said that its board will consider a fund-raising proposal through the issue of debt shortly. The development is part of the company's effort to consolidate its financials and underpin its growth plans in lending and financial services.

 

Important Points:

Fundraising Proposal

Mangal Credit and Fincorp board will consider raising funds through debt instruments, such as non-convertible debentures (NCDs) or other debt securities.

 

Although no amount was mentioned specifically, industry experts have made estimates of the fundraising to lie between ₹200 crore to ₹500 crore, depending on market conditions.

 

Strategic Reasoning:

The planned fundraising is anticipated to support the company's lending activities, mainly in retail loans and small and medium enterprise (SME) lending.

 

The extra capital will further provide enhanced liquidity to allow the company to grow its loan book while preserving a robust capital adequacy ratio.

 

Market Context

The NBFC industry has seen consistent growth as a result of increasing demand for credit in under-served markets. Mangal Credit is looking to leverage this trend by expanding its operations.

 

Debt markets are also favorable with competitive interest rates, and it is a good time for NBFCs to raise funds.

 

Leadership Insights:

A Mangal Credit and Fincorp spokesperson said:

This potential debt raise is a testament to our focus on scaling our business while maintaining financial stability. Terms will be determined after board approval."

 

Outlook:

With this proposed fundraising, Mangal Credit is set to enhance its market presence and serve increasing credit demand in key sectors.

 

Conclusion:

Mangal Credit's move to consider debt fundraising highlights its strategic emphasis on growth, liquidity management, and building its lending book.

 

Source: Business Standard; April 8, 2025.