Announcement under Regulation 30 and 51 of SEBI (LODR), Regulation, 2015
Awaiting price reaction for this filing.
Aavas Financiers' Executive Committee approved the issuance of up to 20,000 senior, secured, rated, listed, redeemable Non-Convertible Debentures (NCDs) on a private placement basis. Each NCD has a face value of Rs. 1,00,000, taking the total issue size to up to Rs. 200 Crores. The NCDs will have a 60-month (5-year) tenor, with quarterly interest payments and principal repayment in 20 equal quarterly instalments of Rs. 5,000 per debenture. The NCDs will be listed on the WDM (wholesale debt market) segment of BSE and secured by a first-ranking exclusive charge of at least 110% on identified loan receivables. The coupon rate has not yet been disclosed and will be specified in the Key Information Document (KID).
This is a routine debt-raising exercise by Aavas to bolster its funding base for lending operations. Existing equity shareholders are not directly affected as this is a debt instrument, not equity dilution. The final coupon rate (to be disclosed in the KID) will determine how attractive the NCDs are to debt investors.