Poonawalla Fincorp Approves Raising Up To Rs 1,500 Crore Via NCDs

Poonawalla Fincorp Ltd. on Thursday approved the raising of funds worth Rs 1,500 crore through the issue of non-convertible debentures on private placement basis, as per an exchange filing.

The company shall pay a coupon on the NCDs at a rate of 2% over and above the applicable coupon rate for any delay in payment, added the filing, in the case of interest or the principal amount.

An NCD is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.

The company has set a base issue of Rs 1,000 crore for the issuance of NCDs, and a green-shoe option to retain oversubscription of up to Rs 500 crore.

Poonawalla Fincorp had reported 78.4% decline in June quarter net profit at Rs 63 crore, on higher expenditure.

The non-banking financial company had a net profit of Rs 292 crore in the June quarter of Fiscal 2025.

In a regulatory filing, Poonawalla Fincorp said its total income rose to Rs 1,314 crore in the quarter from Rs 996 crore a year ago. Total expenses more than doubled to Rs 1,231 crore from Rs 606 crore.

The shares of Poonawalla Fincorp were trading 2.47% lower at Rs 432 apiece on NSE, compared to a largely unchanged Nifty 50 as of 3:15 p.m.