Poonawalla Fincorp To Issue ₹5 Billion In Non-Convertible Debentures To Strengthen Lending Operations

Image Source : NDTV Profit

Poonawalla Fincorp Limited has announced plans to raise ₹5 billion through the issuance of nonconvertible debentures (NCDs), aiming to bolster its financial position and expand its lending portfolio. The move comes as part of the company’s strategy to diversify funding sources while maintaining liquidity strength.

Debt Issuance Details

The NCDs will be listed on the debt market segment of the Bombay Stock Exchange (BSE)
The issuance includes secured, redeemable, rated, and listed debentures with a face value of ₹100,000 each
The tenure of the instruments will range from two to three years, with maturity dates set for April 2027 and April 2028
Coupon rates for the NCDs are expected to be between 7.65 percent and 7.70 percent per annum

Investor Sentiment And Market Impact

The offering is expected to attract institutional investors seeking stable returns in a lowyield environment
Poonawalla Fincorp’s strong credit rating of AAA/Stable from CRISIL and CARE enhances investor confidence
The funds raised will be used to expand the company’s lending portfolio and improve liquidity management

Industry Perspective

The NCD issuance reflects Poonawalla Fincorp’s commitment to strengthening its financial foundation while ensuring sustainable growth in the lending sector. With strong demand for corporate debt instruments, the offering is expected to generate significant investor interest.

Sources: BSE India, Economic Times, Business Standard.