Notice to Debenture Holders - Intimation for exercise of call option
POONAWALLA · price
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Poonawalla Fincorp Limited has decided to exercise its call option to redeem 60 Non-Convertible, Subordinated, Perpetual Debentures with a total face value of Rs. 3 crore. The debentures, issued on June 14, 2016 at 12.10% annual coupon rate, will be redeemed on June 12, 2026 (exactly 10 years after issue). The record date for redemption entitlement is May 27, 2026. The NCDs carry strong credit ratings of CARE AA+ (Stable) and CRISIL AA+/Stable. The company has submitted a redemption approval request to RBI and will pay the principal amount along with accrued interest to debenture holders.
This is a routine debt repayment exercise using a pre-negotiated call option. The company is reducing its perpetual debt burden, which is positive for its balance sheet. The small size of Rs. 3 crore suggests minimal impact on overall financial position.