Pune: Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has opened its public issue of Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) worth ₹100 crore (including greenshoe option), has subscribed 51 percent as per Exchange data at 5 pm. The public issue opened for subscription on February 28, 2025 on the Bombay Stock Exchange (BSE) and will remain open until March 13, 2025.
The BBB-/Stable CRISIL-rated NCDs offer investors an attractive fixed-income opportunity with a 13% per annum return, featuring monthly interest payouts. The proceeds from this NCD issue will be utilized primarily for the company’s stated fund allocation plan.
Strong Financial Performance and Growth
Prachay Capital has demonstrated a robust financial track record with zero delays in servicing liabilities and maintaining a Gross NPA of 0% on its Assets Under Management (AUM). The company’s AUM has grown at a CAGR of 46.61%, increasing from ₹132.92 crore as of March 31, 2022, to ₹285.70 crore as of March 31, 2024. Over the last three financial years, Return on Equity (ROE) has consistently exceeded 17% post-tax.
Other key financial highlights include:
• Net Interest Margin (NIM): 8.40% (FY 2024), 9.49% (FY 2023), and 11.02% (FY 2022)
• Return on Total Assets (ROTA): Maintained within the 4%–5% range
• Capital Risk Adequacy Ratio (CRAR): 27.32% (as of September 30, 2024)
A Key Step in Expansion Strategy
Commenting on the issue, Mr. Girish Murlidhar Lakhotiya, Founder and Managing Director, Prachay Capital Limited, said: “This NCD issuance marks a significant milestone in our expansion strategy. With a strong focus on structured corporate lending and investments in private debt instruments, we are committed to delivering sustainable and competitive returns for our investors while maintaining a solid financial foundation.”
With a BSE listing, this issue is open for subscription by retail individual investors, high-net-worth individuals (HNIs), institutional investors, and corporates. Eligible investors can refer to the “Issue Structure” section on page 189 of the Prospectus for further details.
Corporate Bond Market Trends
In the first half of fiscal 2025, 607 issuers raised ₹5.11 lakh crore through the corporate bond market. This period also saw the entry of 200+ new issuers, reflecting increased confidence and participation in the debt market. Notably, AAA-rated corporate bonds dominated the market, accounting for approximately 67% of total issuances during this period.
This NCD issue positions Prachay Capital as a trusted player in the fixed-income investment landscape, offering stability, strong financials, and attractive returns to investors.
