Richfield Financial Taps Debt Market: ₹100 Crore NCD Issue Approved for Expansion

Richfield Financial Services Ltd announced that it will raise ₹100 million (₹10 crore) by issuing secured redeemable Non-Convertible Debentures (NCDs), as a strategic move to consolidate its capital base as well as to meet follow-on growth plans.

Key Highlights:

- The firm will issue 1,00,000 secured redeemable Series III NCDs of ₹1,000 each by way of private placement to certain investors.

- The fundraising was approved in the board meeting of 24th February 2025 and will be done either in one or a series of tranches.
- The NCDs ranged in tenor and interest rate between 11.25 percent to 11.75 percent per year with tenor of 1 year to 68 months.

Strategic Thinking:

- Richfield plans to use the proceeds to finance its expansion of financial services products, to enhance lending ability, and to enhance liquidity.

- The move is part of the group's overall strategy of diversification of sources of funds and reducing reliance on equity-based fund raising.
Investor Options:

- There are arrangements for monthly and annual interest payments to accommodate short-term and long-term investors.

- There is also a special doubling plan over 68 months for risk-averse investors who want growth in capital.

Future Prospects:

- Launch of NCD will improve Richfield's debt profile as well as attract retail and institutional attention with the increasing need for fixed-income securities. - The company is also reorganizing its corporate structure, including a revision of its Memorandum of Association along with registered office, signaling a stage of evolution and transformation. 

Sources: BSE India, rfsl.co.in, Rediff MoneyWiz, Business Standard, MoneyWorks4Me

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