Digital lending-focused non-banking financial company (NBFC) DMI Finance has successfully raised ₹1,455 crore through the issuance of secured, listed non-convertible debentures (NCDs) on a private placement basis, as reported by CNBC TV18. The issue received aggregate bids of ₹1,630 crore, indicating demand above the amount raised. The NCDs carry an ICRA rating of AA and have tenures of up to 36 months. Investors participating in the issue included mutual funds, alternative investment funds (AIFs), primary dealers, corporates and family offices.
According to CNBC TV18, the proceeds from the NCD issue will be used to support the growth of DMI Finance's lending portfolio and meet its funding requirements. Morgan Stanley was consulted on the structuring of the issuance. Shivashish Chatterjee, co-founder and managing director of DMI Finance, stated that the company was focused on maintaining a diversified funding profile as it scales its business. He emphasized that the funds would support the company's ability to meet customers' credit requirements while maintaining its approach to growth and risk management.
As reported by CNBC TV18, the NCD issue is part of DMI Finance's efforts to diversify its funding sources and increase its participation in the debt capital markets. The company stated it accesses funding from banks, financial institutions and debt capital markets to support its lending operations. Founded in 2008, DMI Finance is a systemically important NBFC offering consumption, personal and MSME loans. The company uses technology across customer acquisition, underwriting, servicing and collections as part of its lending operations.
