Non-deposit-taking NBFC Poonawalla Fincorp Ltd approved the issuance of unsecured, redeemable, rated, listed, subordinated non-convertible debentures (NCDs) constituting Tier II capital worth up to ₹200 crore through a private placement. According to reports from CNBC TV18, the approval was granted by the company's Finance Committee under the authority delegated by the Board of Directors. The company will issue 20,000 NCDs with a face value of ₹1,00,000 each, aggregating up to ₹200 crore, under PFL NCD Series 'SDA1' FY2026-27 Re-issuance-I. The NCDs will be issued in dematerialised form to eligible investors through a private placement and are proposed to be listed on the BSE.
As reported by CNBC TV18, the debentures will be unsecured and subordinated, forming part of the company's Tier II capital. The company has specified that in the event of a delay of more than three months in payment of interest or principal, or any default, it will pay a coupon at 2% over and above the applicable coupon rate for the period until the default is cured to the satisfaction of the Debenture Trustee, acting on the instructions of the debenture holders. The tenor, coupon, payment schedule for coupon and principal, allotment date, redemption date, redemption terms and other instrument-specific rights will be as specified in the key information document.
According to CNBC TV18, last month, global brokerage firm Jefferies initiated coverage on shares of Poonawalla Fincorp Ltd with a 'Buy' rating and a price target of ₹490 per share. Jefferies believes Poonawalla Fincorp is well-positioned to benefit from its revamped leadership team, expanding product portfolio, growing distribution network, and strengthened underwriting practices. The brokerage expects the company to deliver assets under management (AUM) growth at a CAGR of 33% over the coming years, which would be the fastest among major non-banking financial companies (NBFCs). It also sees net interest margins (NIMs) improving due to a favourable shift in the loan mix, while lower slippages and a better portfolio mix are expected to drive a decline in credit costs.
As reported by CNBC TV18, Jefferies expects a sharp improvement in profitability, with return on assets (ROA) and return on equity (ROE) projected to expand to 16% by FY29 from around 6% in FY26. The brokerage believes this earnings trajectory should support the stock's premium valuation. Shares of Poonawalla Fincorp Ltd ended at ₹472.05, down by ₹4.35, or 0.91%, on the BSE.
