Poonawalla Fincorp Board Approves ₹1,600 Crore Fundraise via NCDs

Poonawalla Fincorp Limited has received approval from its Finance Committee to raise ₹1,600 crore through non-convertible debentures (NCDs), as per the filing. The decision was formalised on June 20, 2025, and the issuance will be executed via private placement in two series.

Issue Structure

The proposed offering will consist of 1,60,000 secured, redeemable, rated, listed NCDs, each with a face value of ₹1,00,000. The issue is split into 2 equal parts:

• Series ‘C3’ STRPP I FY 2025-26: 80,000 fully-paid NCDs worth ₹800 crore
• Series ‘C4’ STRPP II FY 2025-26: 80,000 partly-paid NCDs worth ₹800 crore

All debentures will be issued in dematerialised form and listed on BSE Limited.

Security and Payment Terms

The debentures will be secured by a first-ranking pari passu charge on hypothecated properties. This security is intended to provide adequate coverage until the redemption date. Payment terms, coupon rate, and repayment schedules will follow the details specified in the Key Information Document provided to eligible investors.

Penalty Clause

If there is any delay in payment of interest or principal beyond three months from the due date, the company will be liable to pay an additional 2% interest over the applicable coupon rate. This will remain in effect until the default is resolved to the satisfaction of the debenture trustee.

Poonawalla Fincorp Background

Poonawalla Fincorp, formerly Magma Fincorp, is a non-deposit taking, systemically important non-banking financial company (ND-SI-NBFC) registered with the Reserve Bank of India. The company operates in the financial services space and is listed on both BSE and NSE.

Read more: Poonawalla Fincorp Launches Industry-First Digital Business Loan for MSMEs!

Poonawalla Fincorp Share Price Performance

Poonawalla Fincorp share price closed at ₹415.05 on June 20, 2025, at 3:30 PM, up 0.81% for the day, with a 4.49% gain over the past month and 30.40% over the last 6 months.

Conclusion

The ₹1,600 crore capital raise through private placement is structured in two series of listed NCDs. The secured nature of the instruments and defined repayment terms form the core framework of the issuance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.