Prachay Capital NCD opens on June 5: Know interest rates, issue details & more

Prachay Capital has announced a public issue of listed, rated, secured, redeemable, Non-Convertible Debentures (NCDs) with a base issue size of ₹50 crore, with an option to retain oversubscription up to an additional ₹50 crore, aggregating up to ₹100 crore.

Prachay Capital is an RBI-registered, non-deposit-taking base layer Non-Banking Finance Company (NBFC). The company primarily caters to the credit and investment needs of mid-sized businesses in India. It has established an integrated financial ecosystem along with its two wholly-owned subsidiaries: Prachay Securities Private Limited (PSPL) and Prachay Investment Management Private Limited (PIMPL), to deliver comprehensive credit and investment solutions.

Through its wholly-owned subsidiary PSPL, the company operates "Bondsmart," a SEBI-registered online bond platform for trading privately placed and publicly issued fixed income securities. PSPL also acts as a lead broker for public issues of non-convertible debentures and has developed a hybrid "phygital" (physical + digital) distribution platform to enable wider investor participation in public bond issuances. PIMPL is registered with SEBI as the investment manager to a Category II Alternative Investment Fund under the Prachay AIF. The fund's first scheme is focused on structured and asset-backed credit opportunities, which include secured non-convertible debentures, escrow-backed cash flow structures, and hybrid debt instruments.

Prachay Capital NCD issue will open on Friday, June 5, 2026 and remain open until June 18, 2026. The NCDs are proposed to be listed on BSE within three working days of the issue closing date, and will be allotted and traded in dematerialised form through NSDL and CDSL.

The issue offers three series of NCDs at a face value and issue price of ₹1,000 per NCD. The issue carries fixed coupon rates of 12.25% (3-year maturity), 12.50% (4-year maturity), and 12.75% (5-year maturity). The minimum application size is 10 NCDs (₹10,000), with subsequent applications in multiples of 1 NCD. The issue is rated IVR BBB/Stable by Infomerics Valuation and Rating Limited. SKI Capital Services Limited is the Lead Manager, and Catalyst Trusteeship Limited is the Debenture Trustee.

Consolidated financial performance

The company's consolidated AUM grew at a CAGR of 15.9% during FY24 to FY26. As of March 31, 2026, consolidated net worth stood at ₹12,011.76 lakh, with a CRAR of 25.64%. Consolidated ROE and ROA stood at 6.85% and 1.65%, respectively as of March 31, 2026.

Objective of the Issue:

• Around 75% of the net proceeds will be utilised for lending, investments in AIF schemes managed by the company’s subsidiary and repayment or prepayment of borrowings.
• Up to 25% of the proceeds may be used for general corporate purposes.

Strengths and opportunities

• The company offers quick and easy loan finance solutions with an effective approval mechanism and customised financing solutions that cater to the different financial needs of borrowers.
• Scalable wholesale B2B financing business model driven by processes and systems geared towards consistent growth.
• Excellent asset quality with nil GNPA and NNPA since inception, backed by high-quality credit appraisal standards and secured lending, along with a strict monitoring mechanism.

Risks and threats

• Although the company boasts of having a zero GNPA since its inception due to its strong risk management framework, but still due to concentration in the real estate market of Pune, its asset quality may be vulnerable to any negative developments in its geographical region and sector; however, efforts are being made in this regard.
• Capital structure is highly levered, with debt at ₹354.80 crore, with a gearing ratio of 3.04x in FY26.
• Highly concentrated portfolio in the real estate sector (98.2%), while operations remain primarily concentrated in Maharashtra (84.2%).