Strong Yields, Stronger Security: Capital India Pitches ₹50 Cr NCD Plan

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In a strategic move to boost its financial flexibility, Capital India Finance Ltd announced in its board meeting held on July 16, 2025, the approval to raise funds up to INR 50 crores through issuance of Non-Convertible Debentures (NCDs) via private placement.

Key highlights from the announcement include:

Borrowing Method: The company will raise funds by issuing secured NCDs in one or more tranches.
Total Size: Up to ₹50,00,00,000 (Fifty Crores Indian Rupees).
Listing: These NCDs are slated to be listed on BSE Limited, ensuring tradability.
Coupon Rate: Fixed at 9.55% per annum, with payment scheduled yearly and upon redemption.
Principal Repayment: Entire principal amount payable on the redemption date.
Tenure: The exact maturity period to be decided by the Board or its authorized Committee.
Security Coverage: To maintain a security cover ratio of 110% against the principal outstanding, supported by secured loans' principal of receivables.

This funding is aimed at strengthening the company’s capital base while maintaining a robust security framework for investor protection. The fixed coupon rate is competitive, appealing to fixed income investors seeking steady returns.

This development comes at a time when Capital India Finance is focusing on strategic consolidation after receiving RBI approval for divesting its stake in Capital India Home Loans Ltd, reflecting a clear intent to streamline operations and focus on core lending business areas.

With the NCD issuance, Capital India Finance Ltd is poised for continued growth while offering investors a secured, attractive fixed-income opportunity.

Source: Capital India Finance Ltd official announcements and market news.