SRG Housing Finance Limited has informed the Exchange regarding allotment of 5000 Non-Convertible debentures on private placement basis at its meeting held on August 29, 2025
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SRG Housing Finance has allotted 5,000 secured, listed, senior, redeemable, fully paid-up non-convertible debentures (NCDs) via private placement on August 29, 2025. The base issue size is INR 35 crores with a green shoe option of another INR 15 crores, taking the total potential size to INR 50 crores, at a face value of INR 1,00,000 per NCD. The NCDs carry a coupon of 11.52% per annum payable monthly and have a maturity date of March 1, 2031. Only 2 investors participated: Unifi Financial Private Limited and Unifi Mutual Fund, and the issue is fully subscribed. The NCDs are secured by an exclusive charge over a specific portfolio of receivables with a minimum security cover of 1.1 times and will be listed on BSE.
The company has raised long-term debt funding (over 5-year tenor) from two institutional investors at an 11.52% annual cost, which is on the higher side for a housing finance company. Shareholders should note this increases the company's interest expenses, but the long maturity and secured structure indicate the capital is being used to fund housing loan assets. The successful placement shows investor confidence, though the elevated coupon reflects the company's current borrowing cost in the market.