Arka Fincap on December 5, 2023 announced the public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each. The base issue size is Rs 150 crore, with an option to retain oversubscription up to another Rs 150 crore, (Green Shoe Option), thus aggregating up to a tranche issue of Rs 300 crore (Tranche I Issue).
Tranche I Issue will open for subscription on December 7, 2023, and close on December 20, 2023 with an option for early closure as decided by the board of directors or asset liability committee of the company, and subject to relevant approvals. The allotment will be on a first-cum-first-serve basis. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on proportionate basis, Akra Fincap said in a press release.
The NCDs offer a coupon rate of 9-10 per cent per annum with quarterly and annual interest options. The NCDs have three tenures of 24, 36 and 60 months. The NCDs are proposed to be listed on BSE, Arka Fincap said in the press release.
According to Arka Fincap, at least 75 per cent of the funds raised through this Tranche I Issue will be used for onward lending, financing, and repayment of interest and principal of existing borrowings of the company. The balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25 per cent of the amount raised in the Tranche I Issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“SEBI NCS Regulations”).
Arka Fincap further said that the NCDs have been rated CRISIL AA-/Positive by Crisil. Also, these will be traded in a dematerialised format.
Vimal Bhandari, executive vice chairman and CEO, Arka Fincap, said: “We are delighted to launch the Tranche I Issue of the NCDs. We are a professionally managed organisation, part of the Kirloskar Group, primarily engaged in providing structured secured term financing solutions to corporates, real estate and urban infra financing, loans to SMEs & MSMEs, and personal finance loans to borrowers in India.
With our focus on our customers, experienced management team and vigilant monitoring of our assets, our business has experienced growth since the commencement of our operations in Fiscal 2019. We believe that we have a well-diversified funding profile that underpins our strong liquidity management system, our strong credit rating and brand equity. The public issue of NCDs is in line with our strategy of liability diversification.”
