Please find enclosed announcement pertaining to allotment of Senior, Secured, Rated, Listed, Redeemable, Transferable, INR Denominated Non- Convertible Debentures.
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Purple Finance has allotted 25,000 secured NCDs of face value Rs. 10,000 each, aggregating to Rs. 25 crore. These were issued in two tranches — Rs. 10 crore to Fourdegreewater Capital Private Limited and Rs. 15 crore to Ambium Finserve Limited. The NCDs carry a coupon of 12.25% per annum, payable monthly, with a 24-month tenure maturing on January 12, 2028. Principal will be repaid in six installments. The NCDs are secured by a first-ranking charge on the company's book debts and loan receivables, and will be listed on BSE's Wholesale Debt Market. An additional 2% penalty interest applies in case of payment default.
The company has raised Rs. 25 crore of debt capital at a relatively high 12.25% interest rate, indicating cost of borrowing is meaningful but the secured nature and monthly coupon may be well-received by debt investors. Shareholders should note this increases the company's debt obligations and interest expense over the next two years.