February 18, 2025
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Prachay Capital NCD issue on 28 Feb 2025
Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has announced the public issue of its Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) to raise up to Rs.10,000 lakh.
Key Highlights:
- Issue Size: Base issue of Rs.5,000 lakh, with a Green Shoe option to retain oversubscription up to Rs.5,000 lakh, aggregating up to Rs.10,000 lakh.
- Instrument: Listed, Rated, Secured, Redeemable Non-Convertible Debentures (NCDs) of face value ₹1,000 each.
- The Company has filed prospectus dated 17 February 2025 (Prospectus) with Registrar of Companies Maharashtra at Pune and submitted a copy to BSE Limited.
- Issue Opens: 28 February 2025 for maximum period of 10 working days. Allotment on first come first served basis and thereafter in case of oversubscription proportionate allotment of the NCDs to the applicants from the date of oversubscription. The company reserves the right to close the issue earlier with advertisement in all the newspapers in which pre-issue advertisement for opening of the issue has been given on or before such earlier or initial date of Issue closure.
- Mode of Issuance & Trading: NCDs will be issued and traded in dematerialized form only.
- Credit Rating: Rated BBB-/Stable by CRISIL, indicating a moderate degree of safety regarding timely servicing of financial obligations and such securities carry moderate credit risk.
- Listing: Proposed on BSE Limited within 6 working days of issue closure date.
- Minimum Subscription: 75% of the base issue size (Rs.3,750 lakh).
Fund Utilization:
- Minimum 75% for the purpose of onward lending, investments in current and future AIF schemes of our alternate asset management business managed by our subsidiary Prachay Investment Managers Private Limited, repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by our Company.
- Maximum 25% for general corporate purposes.
Security & Collateral:
- Secured by first ranking pari passu charge with existing secured creditors/ lenders, on all present and future loan receivables, receivables from investment in debentures, receivables from investments in the units of AIFs, balance with banks, fixed deposits and any other present and future receivables.
- Security Cover: Minimum 100% of the outstanding principal and interest due thereon at all times.
Tenor:
- 5 years (i.e.,1826 days)*
*Subject to exercise of call option by the Company at any time after the period of 1 (one) year from the Deemed Date of Allotment of NCDs under the terms of the Prospectus
Redemption & Default Terms:
- Monthly coupon payments + Principal repayment at maturity, if no call option is exercised by the Company under the terms of the Prospectus.
- Default Interest Rate: 2% p.a. over the coupon rate for the defaulting period.
Lead Managers & Issue Partners:
- Lead Manager: Galactico Corporate Services Limited
- Debenture Trustee: Catalyst Trusteeship Limited
- Registrar to the Issue: KFin Technologies Limited
- Legal Counsel: Khaitan & Co.
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