Press Release: Prachay Capital Limited (Company/ Issuer / Prachay Capital) Announces Public Issue of Secured NCDs

Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has announced the public issue of its Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) to raise up to ₹100 Crore.

The BBB-/Stable CRISIL-rated NCDs offer investors a 13% p.a. return with monthly interest payments, making it a fixed-income investment opportunity. The proceeds from this issue of NCDs will be primarily used for the stated fund utilization.

Speaking about the issue, Mr Girish Murlidhar Lakhotiya, Managing Director, Prachay Capital Limited said: "This NCD issue is a key step in Prachay Capital’s expansion strategy. With our focus on structured corporate lending and investment in private debt instruments, we aim to generate strong and sustainable returns for our investors while maintaining a robust financial profile.

Prachay Capital has zero delays in servicing liabilities and has Gross NPA of 0% on its Assets Under Management (AUM). The Company’s AUM has grown at a CAGR of 46.61% from ₹ 132.92.crore as at March 31, 2022 to ₹ 285.70 Crore, as at March 31, 2024 and has return on equity (ROE) above 17% post tax over the last three financial years. The Company’s Net Interest Margin (NIM) for the last three financial years ending on March 31, 2024, March 31, 2023 and March 31, 2022 stood at 8.40%, 9,49% and 11.02%, respectively and Company’s Return on Total Assets (ROTA) have been in range of 4% to 5% for the same period. As on quarter and six months period ended September 30, 2024, the Company’s Capital Risk Adequacy Ratio (CRAR) was 27.32%.

With BSE listing, the issue is open for subscription by retail individual investors, high-net-worth individual investors (HNIs), institutional investors, and corporates. For details relating to eligible investors, see “Issue Structure” beginning on page 189 of the Prospectus.

In the first half of fiscal 2025, 607 different issuers tapped the corporate bond market, issuing bonds totalling Rs 5.11 lakh crore. In the fiscal 2025, the corporate bond market saw 200+ new issuers, reflecting growing confidence and participation in the debt market. Moreover, AAA-rated corporate bonds dominated the bond market with ~67% issuances in the first half of fiscal 2025.” He added.

Issue Structure & Payment Terms
• Coupon Rate – 13% p.a.
• Payment Frequency: Monthly – As per "Issue Structure - Specific Terms of NCDs" (Page 189 of the Prospectus).
• Interest Calculation: Based on actual day count convention.
• Call Option: Company has right (but no obligation) to redeem outstanding NCDs (fully or partially), at any time after the period of 1 (one) year from Deemed Date of Allotment of NCDs, with a notice of at least 21 days before exercising such call option.
• Record Date: 15 days before the interest or redemption payment date.
• Application Money: Full amount payable at the time of application.
• Governing Law & Jurisdiction: The issue is governed by Indian law, and legal matters fall under the exclusive jurisdiction of Pune, Maharashtra.

We cater to the finance needs of medium and large business through corporate credit and corporate bonds.. Our lending is secured by movable/immovable assets and cash flows.

The company operates across two key financial segments:
• Corporate Credit (83.40% of AUM as at September 30, 2024): Focus is on identifying the specific financial needs and the business objective to be achieved by the borrowings and structure a financial arrangement such that the infusion of debt funds would result in achieving business objective of our clients and will result in cashflows which will ultimately be the source of repayment for the borrowing.
• Corporate Bonds – Unlisted, Privately Placed NCDs (16.60% of AUM as at September 30, 2024): Lending to corporates in the form non-convertible debentures instead of traditional loans. The compliance process of unlisted, privately placed NCDs is relatively simpler and provides significant flexibility to businesses to raise funds in the manner that best suits their business models.

We have a long term and sustainable business model which offer unambiguous value propositions to all our stakeholders. For our debt investors, we offer fixed and periodic returns which are higher than traditional debt investment opportunities such as fixed deposits, liquid mutual funds etc. For our borrowers, we provide fast and flexible financial solutions to medium to large-sized localised businesses. For our employees, we provide the opportunity to work in the field of business finance and create innovative, mutually beneficial financial solutions and structures in an organisation that supports the holistic growth of an individual.

Our wholesale corporate lending model is scalable, enabling us to expand our product offerings and increase our geographical base.

Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Prospectus.

The Prospectus is available on the website of:
• Stock Exchange (BSE): www.bseindia.com
• SEBI: www.sebi.gov.in
• Company Website: www.prachay.com
• Lead Managers: www.galacticocorp.com

For Investor Relations, contact: investments@prachay.com