Poonawalla Fincorp Raises ₹150 Crore Through Tier II Debentures

MUMBAI — Poonawalla Fincorp Limited has raised ₹150 crore through the allotment of unsecured Tier II non-convertible debentures (NCDs).

The company's Finance Committee approved the allotment on August 21, 2026, consisting of 15,000 unsecured, subordinated NCDs constituting Tier II capital. The instruments carry an annual coupon rate of 8.4308 per cent.

Each NCD has a face value of ₹1 lakh. The aggregate amount received by the company stood at ₹153.54 crore, which includes accrued interest of ₹4.12 crore and a discount of ₹57.97 lakh. The instruments have a tenure of approximately 3,534 days from allotment and are set to mature on April 24, 2036. These debentures will be listed on the Debt Market Segment of BSE Limited.

According to the terms of the issue, the debentures are unsecured and carry a penalty coupon of 2 per cent above the applicable rate if there is a delay in the payment of interest or principal exceeding three months.

On the equity side, Poonawalla Fincorp shares closed at ₹490.05 on the National Stock Exchange (NSE), marking a 0.81 per cent decline from the previous close of ₹494.05. The trading volume reached 7.48 lakh shares, totaling ₹36.88 crore in value. During the trading session, the stock touched an intraday high of ₹499.55 before retreating. The company's total market capitalisation stood at ₹43,233 crore.

Market data indicates that the stock trades at a price-to-earnings multiple of 55.28. The company has delivered a return of approximately 8.93 per cent over the past year, underperforming the broader NIFTY 500 index, which recorded a 1.70 per cent gain over the same period.

"Raising capital through Tier II debentures is a standard approach for financial institutions to strengthen their capital adequacy and support medium-term balance sheet expansion. The 8.43 per cent coupon rate and long-term maturity profile reflect current market conditions for debt instruments of this nature. For investors, monitoring how financial companies utilize subordinated capital for credit growth remains essential for assessing overall asset quality and long-term valuation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes