Aavas Financiers Approves Issuance of ₹100 Crore NCDs via Private Placement
Aavas Financiers' Executive Committee approved the issuance of up to ₹100 Crore in Senior, Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) via private placement. The NCDs have a 60-month tenor and will be listed on BSE. Principal repayment will be in 20 quarterly installments.
The issuance of ₹100 Crore in NCDs is a significant funding activity for the company, which can support its growth and operations. However, it is a debt instrument and not equity, so the immediate impact on existing shareholders might be considered medium.
The company is raising debt through NCDs, which is a positive sign of its funding strategy and operational capability to service its debt obligations. The issuance is secured and rated, indicating financial prudence.
Aavas Financiers Limited announced the outcome of its Executive Committee Meeting of the Board of Directors, held on September 02, 2026. The committee, acting under the authority granted by the Board on April 24, 2025, and within the limits approved by shareholders at the 15th Annual General Meeting on September 16, 2025, has approved the issuance of up to 10,000 Senior, Secured, Rated, Listed, Transferable, Redeemable Non-Convertible Debentures (NCDs).
Each NCD has a face value of ₹1,00,000, aggregating to a nominal value of up to ₹100 Crore. This issuance will be conducted on a private placement basis, in compliance with the Companies Act, 2013, SEBI LODR Regulations, and SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
The NCDs will have a tenor of 60 months from the Deemed Date of Allotment and are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE Limited. Interest will be paid quarterly, and the principal amount will be repaid in 20 equal quarterly installments of ₹5,000 per NCD, starting from the Deemed Date of Allotment, with the final redemption occurring at the end of 60 months. A first-ranking exclusive charge of at least 110% of the aggregate principal and interest amount will be created over identified receivables/loans/book debts. The meeting commenced at 07:32 PM (IST) and concluded at 07:38 PM (IST).
A plain-language summary of a public exchange filing by Aavas Financiers Limited. Read the original for the full detail.