Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has successfully closed its public issue of Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) at 113.36% subscription, according to exchange data. The issue, which opened on February 28, 2025, on the Bombay Stock Exchange (BSE), aimed to raise Rs 50 crore (excluding the greenshoe option) and closed on March 13, 2025. With a BSE listing, this issue was open for subscription to retail investors, high-net-worth individuals (HNIs), institutional investors, and corporates. The maiden NCDs issue is scheduled to list on 24 March 2025.
Rated BBB-/Stable by CRISIL, these NCDs offer investors a 13% per annum return with monthly interest payouts, making them an attractive fixed-income opportunity. The proceeds will be deployed as per the company’s stated fund allocation plan.
Fund Utilization:
Minimum 75% for the purpose of onward lending, investments in current and future AIF schemes of our alternate asset management business managed by our subsidiary Prachay Investment Managers Private Limited, repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by our Company.
Maximum 25% for general corporate purposes.
A Key Step in Expansion Strategy
Commenting on the successful issue, Mr. Girish Murlidhar Lakhotiya, Founder and Managing Director, Prachay Capital Limited, said: “This NCD issuance is a significant milestone in our expansion strategy. With a strong focus on structured corporate lending and private debt investments, we remain committed to delivering sustainable and competitive returns while maintaining a solid financial foundation. We sincerely thank our investors and partners for their trust and support, especially amid volatile equity market conditions.”
Strong Financial Performance and Growth
Prachay Capital has maintained a strong financial track record, with zero delays in servicing liabilities and a Gross NPA of 0% on its Assets Under Management (AUM). The company’s AUM has grown at a CAGR of 46.61%, increasing from Rs 132.92 crore as of March 31, 2022, to Rs 285.70 crore as of March 31, 2024. Over the last three years, its Return on Equity (ROE) has consistently exceeded 17% post-tax.
Key financial highlights:
Net Interest Margin (NIM): 8.40% (FY 2024), 9.49% (FY 2023), 11.02% (FY 2022)
Return on Total Assets (ROTA): Maintained between 4%–5%
Capital Risk Adequacy Ratio (CRAR): 27.32% (as of September 30, 2024)
Corporate Bond Market Trends
In the first half of fiscal 2025, 607 issuers raised rs 5.11 lakh crore in the corporate bond market, with over 200 new entrants. AAA-rated corporate bonds accounted for approximately 67% of total issuances, reflecting growing confidence in the debt market.
This successful NCD issue further strengthens Prachay Capital’s position as a trusted player in the fixed-income investment space, offering stability, strong financials, and attractive returns to investors.
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