Please find enclosed the Outcome of Finance Committee Meeting of the Board of Directors of the Company held on December 24, 2025.
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Purple Finance's Finance Committee approved the issuance of two tranches of Non-Convertible Debentures (NCDs) on a private placement basis. The first is up to 25,000 senior, secured, rated, listed NCDs with a face value of Rs 10,000 each, aggregating up to Rs 25 crore, carrying a coupon of 12.25% per annum payable monthly, with a 24-month tenure. The second is up to 500 subordinated, unsecured, unrated, unlisted NCDs of Rs 1,00,000 each, aggregating up to Rs 5 crore, carrying a coupon of 12.50% per annum payable monthly, with a 61-month tenure. Both will be listed on BSE's Wholesale Debt Market segment. Additionally, the committee approved the sale of a loan portfolio worth up to Rs 8.66 crore to Vaastu Housing Finance Corporation under a Direct Assignment arrangement on a 90:10 basis, where Purple Finance will continue to act as the servicer.
The company is raising Rs 30 crore through high-cost NCDs (12.25-12.50%), which will boost its lending capital but increase interest expenses and pressure margins. The portfolio sale to Vaastu is described as income accretive and demonstrates the company's ability to manage its loan book. There is no equity dilution since these are debt instruments, but the high borrowing cost signals elevated funding requirements typical of a growing NBFC.