Poonawala Fincorp board approves NCD issuance worth ₹1,875 crore through private placement

"Issuance of 187,500 secured, redeemable, rated, listed, non-convertible debentures of a face value of ₹1,00,000 each for an amount aggregating up to ₹1,875,00,00,000 (Indian Rupees One Thousand Eight Hundred and Seventy Five Crore Only) through PFL NCD Series ‘A1’ ₹ 1160 Crore and PFL NCD Series ‘A2’ ₹215 Crore with a green shoe option of ₹500 Crore.” the company said in a statement.

The NCDs are proposed to be listed on BSE Limited, the company said.

Shares of Poonawalla Fincorp settled at ₹383.55 apiece on the National Stock Exchange, jumping 4.71%.

Poonawalla also said that the firm will pay a coupon on the NCDs at a rate of 2% over and above the applicable coupon rate for any delay in payment of interest/principal amount of the NCDs for the period “until such event of default is cured to the satisfaction of the Debenture Trustee (acting on the instructions of the Debenture-holders).”

The company on Tuesday also announced that it has entered the gold loan business.

The gold loan offering, with approvals in less than 30 minutes, will be a secure and transparent financing solution, the company said, adding that customers will be able to unlock the value of their gold without selling it.

Poonawalla Fincorp plans to open 400 new branches across Tier 2 and Tier 3 cities in a phased manner to strengthen its presence.

It said that the gold loan market in India offers a substantial opportunity, with projections hinting at robust growth in the coming years across urban and rural markets.

Arvind Kapil, managing director and chief executive officer of Poonawalla Fincorp, said, "Our gold loan offering represents a natural progression in our secured lending portfolio, combining traditional value with modern convenience. We have designed this product with the customer journey at its core, respecting both the emotional and financial value of gold. At Poonawalla Fincorp, customer asset safety and transparency remain paramount while delivering reliable and premium services."