Equitas Small Finance Bank Limited has informed the Exchange regarding allotment of Non Convertible Securities on July 31, 2025
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Equitas Small Finance Bank has allotted 50,000 Lower Tier II Bonds in the form of Non-Convertible Debentures (NCDs) on July 31, 2025, on a private placement basis. Each NCD has a face value of Rs. 1 lakh, taking the total issue size to Rs. 500 crore, with an additional green shoe option of up to Rs. 250 crore. The bonds carry a coupon rate of 9.6% per annum, are unsecured and subordinated, and have a 5-year tenure maturing on July 31, 2030. Principal will be redeemed in bullet form at par on maturity, and interest will be paid annually. The NCDs are listed on BSE.
This Rs. 500 crore Lower Tier II bond issuance strengthens the bank's capital base, supporting regulatory capital adequacy requirements. For shareholders, it is a routine capital-raising exercise and is unlikely to cause any equity dilution since these are debt instruments, though it adds to the bank's interest obligations.