Arka Fincap announces NCD issue of Rs 300 crore, issue opens on December 7
DATE: December 05, 2023
Arka Fincap announced the public issue of non-convertible debentures (NCDs) worth Rs 300 crore on December 5. NCDs will have a face value of Rs 1,000 each. The base issue size for the offer is Rs 150 crore. There is also a green shoe option of Rs 150 crore if the issue is oversubscribed.
Tranche I issue will open on December 7 and will close on December 20. JM Financials and Nuvama Wealth Management are the lead managers of the issue. CRISIL gave an AA-/Postitive rating for the NCDs.
The NCD’s coupon rates are between 9 and 10 percent per annum with quarterly and annual interest options. The company in a press release said that the NCDs will have three tenors: 2 years, 3 years and 5 years with effective yield in these tenors at 9.29 percent, 9.62 percent and 9.99 percent, respectively. The company said the NCDs will be listed on BSE.
Arka Fincap added that 75 percent of the funds will be utilised for “onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes”.
“We believe that we have a well-diversified funding profile that underpins our strong liquidity management system, our strong credit rating and brand equity. The public issue of NCDs is in line with our strategy of liability diversification,” Vimal Bhandari CEO of Arka Fincap said.
Arka Fincap is a part of Kirloskar group. The company provides structured-term financing solutions to four areas which include corporate lending, real estate and urban infra financing, MSME lending and personal lending. As of September 30, the company’s loan book stood at Rs 4033.19 crore.