Arka Fincap Limited, a non-bank lender promoted by the Kirloskar group, said its public issue of secured redeemable non-convertible debentures (NCDs) has been oversubscribed more than 100 percent with a subscription worth approximately Rs 308 crore.
The issue attracted participation from more than 3,000 investors from diversified segments. The NCD issue of the tranche with a 36-month tenor generated approximately 70 percent of the total demand.
The issue had a base size of Rs 150 crore with an option to retain oversubscription up to Rs 150 crore, aggregating to a tranche limit of Rs 300 crore. The Tranche-I issue opened on December 7, 2023 and closed on December 20, 2023. The NCDs will be listed on BSE Limited, according to a release from the company.
Vimal Bhandari, Executive Vice Chairman &CEO, Arka Fincap Limited said, "We are thrilled by the positive response to our NCD issue. It underscores the confidence investors from diverse backgrounds place in our business model, highlighting a strong demand for top-tier financial instruments with attractive interest rates. This robust support reinforces our commitment to excellence in the country's vibrant financial services ecosystem."
Also read: Arka Fincap announces NCD issue of Rs 300 crore, issue opens on December 7
The NCDs with credit rating - CRISIL AA-/Positive from CRISIL Ratings offered coupon rates in the range of 9-10 percent per annum with quarterly and annual interest options. The NCDs come with three tenors - 24, 36 and 60 months.
At least 75 percent of the funds received through this issue will be used for onward lending, financing and for repayment of interest and principal of existing borrowings of the company and the balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25 percent of the amount received in the Tranche I issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“SEBI NCS Regulations”).
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