Poonawalla Fincorp Announces Issuance of Non-Convertible Subordinated Debentures Worth 3 Billion Rupees

Image Source :HR Economic Times

  Poonawalla Fincorp Limited has approved the issuance of non-convertible subordinated debentures (NCDs) amounting to 3 billion rupees through private placement. This strategic move aims to strengthen the company’s financial position and support its long-term growth plans.

Key Developments in the Issuance
- The NCDs will be issued in dematerialized form to eligible investors through private placement
- The issuance will be structured in multiple series, with varying tenors and coupon rates
- The debentures will be secured by a first-ranking pari passu charge on hypothecated properties
- The company has included a green shoe option to accommodate additional investor demand

Strategic Implications for Poonawalla Fincorp
- The funds raised will be utilized for business expansion and strengthening the company’s lending portfolio
- The issuance aligns with Poonawalla Fincorp’s strategy to diversify funding sources and optimize capital structure
- The company aims to enhance liquidity and maintain a strong credit profile through this initiative

Industry Perspective and Future Outlook
- Analysts view the move as a positive step toward reinforcing Poonawalla Fincorp’s financial stability
- The issuance is expected to attract institutional investors seeking secure, high-yield investment opportunities
- The company’s focus on structured financing solutions will contribute to its long-term sustainability

Source : Poonawalla Fincorp, Economic Times, NDTV Profit.