Pursuant to Regulation 30 of the Securities and Exchange Board of India (LODR), 2015 has inter alia approved the raising of funds through issue of Non-Convertible Debentures for an amount ....
FINKURVE · price
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The board of Finkurve Financial Services approved raising up to Rs. 22 crore through the issue of 2,200 secured, rated, listed, taxable, redeemable Non-Convertible Debentures (NCDs) on a private placement basis. Each NCD has a face value of Rs. 1,00,000 and will carry an annual coupon of 11.75%, payable quarterly. The NCDs have a tenure of 36 months, with allotment on August 13, 2025 and maturity on August 13, 2028, and will be listed on BSE. The issue is secured against the company's receivables equivalent to 1.10 times its gold loan assets under management (AUM). An additional 1% interest will be charged over the coupon rate in case of payment default or covenant breach.
This is a modest debt raise of Rs. 22 crore for the company, which will be used to fund its gold loan business. Since NCDs are non-convertible, there is no equity dilution for existing shareholders. The 11.75% coupon is relatively high, suggesting the market perceives Finkurve as a moderate-credit issuer, but the 1.10x asset cover on gold loan receivables offers reasonable security to debenture holders.