Poonawalla Fincorp Limited has intimated the stock exchanges of its decision to exercise a call option on its outstanding perpetual debt securities. The disclosure is made pursuant to Regulation 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 15 of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.

Nature of the Event

The company is exercising a call option to fully redeem a specific series of its Non-Convertible Debentures (NCDs).

Key Quantitative Figures

The securities involved are 34 Rated, Listed, Unsecured Non-Convertible Subordinated Perpetual Debt Instruments (NCDs).

  • Face Value per NCD: ₹5,00,000 (Rupees Five Lakhs)
  • Total Outstanding Principal Amount for redemption: ₹1,70,00,000 (Rupees One Crore and Seventy Lakhs)
  • Coupon Rate: 12.10% per annum, payable annually
  • Call Option Date: July 3, 2026

Parties Involved

  • Issuer: Poonawalla Fincorp Limited
  • Debenture Trustee: Catalyst Trusteeship Limited (notified of the call option)
  • Credit Rating Agency: Brickwork Ratings India Pvt. Ltd. (rated the NCDs BWR AA-)
  • Regulator: A request for approval of the redemption has been submitted to the Reserve Bank of India (RBI).
  • Stock Exchange: The NCDs are listed on the wholesale debt market segment of BSE Limited.

Purpose / Rationale

The call option is being exercised as per the terms and conditions stipulated in the original Information Memorandum dated July 1, 2016. The terms provided the company with an option to exercise a call at the end of the 10th year from the deemed date of allotment (July 5, 2016).

Terms of Redemption

The NCDs will be redeemed at their face value of ₹5,00,000 each. The redemption amount will include the principal plus all interest accrued thereon up to the redemption date (July 3, 2026). The coupon type is fixed. No call premium is applicable for this redemption (Noted as N.A. in the disclosure).

Financial and Operational Impact

Upon payment of the redemption amount, the company will fully extinguish these NCDs. The disclosure states that no claim shall lie against the company after the redemption is complete. The total cash outflow for the principal component is quantified at ₹1.70 crore, plus accrued interest.

Process for Payment

The redemption amount will be paid directly by crediting the bank accounts of the debenture holders as per the details available in their respective demat accounts with the Depository Participant. Debenture holders have been advised to ensure their bank account details are updated in their demat accounts.