Now Reading: Poonawalla Fincorp raises Rs 150 crore via Tier II debentures
-
01
Poonawalla Fincorp raises Rs 150 crore via Tier II debentures
Poonawalla Fincorp has allotted 15,000 unsecured, subordinated, non-convertible debentures (NCDs) constituting Tier II capital, raising Rs 150 crore. The debentures carry an annual coupon of 8.4308 per cent and mature in April 2036.
The company's Finance Committee approved the allotment on August 21, 2026. The aggregate amount received stood at Rs 153.54 crore, including accrued interest of Rs 4.12 crore and a discount of Rs 57.97 lakh. The instruments will be listed on the Debt Market Segment of BSE.
Poonawalla Fincorp shares closed at Rs 490.05 on the NSE, down 0.81 per cent from the previous close, with a market capitalisation of Rs 43,233 crore. The stock trades at a price-to-earnings multiple of 55.28 and has returned about 8.93 per cent over the past year.
Indian Opinion Analysis
Tier II debentures count as regulatory capital under RBI norms but rank below depositors in a liquidation, so they offer higher coupons than secured debt. The 8.43 per cent coupon is about 150 basis points above the current 10-year government bond yield, reflecting the unsecured nature. For a non-bank lender with a loan book of roughly Rs 20,000 crore, this Rs 150 crore infusion strengthens the capital adequacy ratio by about 0.75 percentage points. Investors should watch whether the stock sustains above its 50-day moving average near Rs 480, a close below that level could signal weakness after the recent underperformance versus the Nifty 500.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
