- Issue will remain open from February 28, 2025 for maximum period of 10 working days
- Allotment on first come first served basis and thereafter in case of oversubscription proportionate allotment of the NCDs to the applicants from the date of oversubscription
- The NCDs offer investors a 13% p.a. return with monthly interest payments, making it a fixed-income investment opportunity
NE BUSINESS BUREAU
AHMEDABAD, FEB 28
Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has announced on Tuesday the launch of its maiden public issuance of secured, rated, redeemable non-convertible debentures (NCDs) on February 28, 2025. The company aims to raise ₹100 crore through this issue.
The offering will comprise up to 1,00,000 NCDs, each with a face value of ₹1,000. The base issue size is ₹50 crore, with an option to retain an over-subscription (green-shoe option) up to an additional ₹50 crore, bringing the total potential issuance to ₹100 crore.
The NCD will remain open for subscription from February 28, 2025 for maximum period of 10 working days. Allotment on first come first served basis and thereafter in case of oversubscription proportionate allotment of the NCDs to the applicants from the date of oversubscription. The company reserves the right to close the issue earlier with advertisement in all the newspapers in which pre-issue advertisement for opening of the issue has been given on or before such earlier or initial date of Issue closure.
The NCDs have been rated “BBB/Stable” by CRISIL, indicating a moderate degree of safety regarding timely servicing of financial obligations and such securities carry moderate credit risk
The 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 following fund utilization.
Minimum 75% for the purpose of onward lending, investments in current and future AIF schemes of the company’s alternate asset management business managed by its subsidiary Prachay Investment Managers Private Limited, repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by the Company. Maximum 25% for general corporate purposes.
Girish Lakhotiya, Founder and Managing Director, said, “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 ₹ 13,291.94 lakh as at March 31, 2022 to ₹ 28,569.77 lakh, 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%.”
Throwing light on the company’s business, Girish said, “The loan ticket size is ₹1 crore to ₹15 crore, which caters to the needs of small companies to meet their immediate capital needs while the banks take care of the bigger corporates.”
Answering a query on the recent Budget impact on NBFCs, Girish Lakhotiya said, “The raising of IT limit to ₹12 lakh for the middle-class will not help in boosting investment but only boost spending.”
The issue will be listed on the BSE.
The lead managers for this issue is Galactico Corporate Services Limited, Debenture Trustee: Catalyst Trusteeship Limited and Registrar to the Issue is KFin Technologies Limited.
