Poonawalla Fincorp To Raise Rs 1,875 Crore Via Issuance Of NCDs

Poonawalla Fincorp Ltd. approved to raise Rs 1,875 crore through the issuance of non-convertible debentures on private placement basis, according to an exchange filing on Tuesday.

The company's finance committee, authorised by the board of directors, approved the issuance of "1,87,500 secured, redeemable, rated, listed, non-convertible debentures of face value of Rs 1,00,000 each for an amount aggregating up to Rs 1,875,00,00,000", the filing stated.

The non-banking financial will also offer an additional green shoe option of Rs 500 crore.

The NCDs are proposed to be listed on BSE, the Pune-based firm said, while adding that it will pay coupon coupon of 2% on the debentures if there's a delay in paying interest or principal, until the default is resolved to the Debenture Trustee's satisfaction, the filings said.

The fundraise nod comes a month after the Cyrus Poonawalla Group-owned Poonawalla Fincorp announced the launch of its secured loans business for commercial vehicles, including both new and old vehicle purchases.

Shares of Poonawalla Fincorp on Tuesday closed 4.35% higher at Rs 382.25 apiece on the NSE, compared to a 2.19% rise in the benchmark Nifty 50. The stock has fallen 20.55% in the last 12 months and risen by 21.6% year-to-date.

Four out of eight analysts tracking the company have a 'buy' rating on the stock, one suggests 'hold' and three recommend 'sell' according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 12.1%.