Sundaram Finance Limited has informed the Exchange regarding the proposal to raise additional Tier 2 capital by issuance of subordinated Non-Convertible Debentures on private placement basis.
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Sundaram Finance Limited's Board has approved raising additional Tier 2 capital of up to ₹500 crore via issuance of subordinated Non-Convertible Debentures (NCDs) on a private placement basis. The issuance will be in one or more tranches during FY 2026-27. Tier 2 capital is subordinated debt that qualifies as regulatory capital for the company, enhancing its capital adequacy. The Board meeting was held on 25th May 2026 from 10:00 AM to 1:15 PM.
This is a routine capital raising exercise for a well-established finance company to bolster its Tier 2 capital base. The subordinated nature of the NCDs means they rank below senior debt but above equity, offering debenture holders slightly higher risk compensation. Private placement limits retail participation and is a cost-effective way to raise debt capital.