The Board of Directors of the Company in its meeting held today has approved the Issue of Non-Convertible Debentures through private placement (SERIES IV).
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Richfield Financial Services Ltd's Board, at its meeting on July 18, 2025, approved raising Rs. 10 Crore through the issuance of 1,00,000 Secured Redeemable Series IV Non-Convertible Debentures (NCDs) of Rs. 1,000 each on a private placement basis. The NCDs are unlisted and will not be listed on any stock exchange, with a deemed date of allotment of August 23, 2025. Six tenure options are offered, with interest rates ranging from 11.25% (400-day monthly) to 12.00% (5-year monthly), including cumulative and doubling schemes. The NCDs will be secured through hypothecation/pledge in favour of the Debenture Trustee. Additionally, the earlier agenda item regarding the takeover of a loan portfolio was deferred to the next Board meeting.
This Rs. 10 Crore fundraise will bolster the company's capital base to support its lending/financial services operations, with relatively attractive coupon rates (up to 12%) reflecting the risk profile of an unlisted NCD. For shareholders, dilution is avoided since these are non-convertible debentures, but the high interest cost will increase the company's debt servicing obligations going forward.