Mangal Credit and Fincorp Limited has informed the Exchange about issue of Securities
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Awaiting price reaction for this filing.
Mangal Credit and Fincorp's board approved raising up to ₹15 crore by issuing 1,500 secured, listed, rated, redeemable NCDs on a private placement basis, with a face value of ₹1 lakh each. The NCDs carry a coupon of 12.90% per annum, payable monthly, and have a 27-month tenor maturing on 3 October 2027, with principal repaid in four equal quarterly installments starting from month 18. The issue is secured by a first-ranking exclusive charge on identified receivables at 1.25x cover and will be listed on BSE. Separately, the company announced a strategic expansion plan to open 15–18 new branches across Maharashtra, Gujarat, and Rajasthan in FY 2025-26 to grow its asset base and customer reach in underserved markets.
The ₹15 crore NCD raise avoids equity dilution but adds to the company's debt obligations at a relatively high 12.90% cost, reflecting its NBFC risk profile. The proceeds will fund branch expansion, which could support loan book growth, but shareholders should monitor the company's ability to service this higher-coupon debt and the execution of its expansion plan.