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

  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.