Capri Global Capital Announces ₹5,000 Crore NCD Issue

Capri Global Capital Limited is announcing a public issue of secured Non-Convertible Debentures (NCDs) to raise up to ₹5,000 million.
The NCDs offer annual coupon rates of up to 9.50% across tenors of 24 to 120 months.

Issue Details

The company plans to raise a total of up to ₹5,000 million. This includes a base issue size of ₹1,000 million and an option to retain oversubscription of up to ₹4,000 million.
The NCDs will have face values of ₹1,000 each. Investors can choose from tenors of 24, 36, 60, and 120 months. The issue is scheduled to open on April 15, 2026, and close on April 28, 2026.
These NCDs are proposed for listing on BSE Limited.

Why It Matters

This debt fundraising is crucial for Capri Global Capital to strengthen its capital structure and secure funds for its operations and potential expansion. Access to debt capital helps Non-Banking Financial Companies (NBFCs) like CGCL maintain liquidity, manage asset-liability mismatches, and continue lending activities.

Company Background

Capri Global Capital is a diversified NBFC focused on MSME loans, affordable housing, construction finance, and gold loans. The company has a history of raising capital through NCDs and Qualified Institutional Placements (QIPs) to support its growth. For example, it raised ₹2,000 crore via a QIP in June 2025.
However, the company operates with a high debt-to-equity ratio, reported at 251.6% as of FY25, with total debt standing at ₹167.9 billion. Its creditworthiness is supported by ratings such as 'BB- (Stable)' from Fitch and 'AA/Stable' from Acuité.

Implications of the Funding

The company expects the raised funds to provide greater financial flexibility and enhance liquidity to support ongoing lending operations and business growth.
This capital could potentially increase profitability if deployed effectively in high-yield assets. It also demonstrates the company's ability to meet funding requirements through diverse debt instruments.

Risks to Watch

Investors in NCDs face inherent risks, including potential credit rating downgrades or withdrawals. Capri Global Capital's high debt-to-equity ratio warrants attention.
Additionally, SEBI previously imposed a ₹1.3 crore penalty on 25 individuals for share price manipulation involving CGCL shares between 2019 and 2020, highlighting potential governance concerns.

Peer Comparison

Capri Global Capital operates in the competitive NBFC space alongside major players such as Bajaj Finance, Tata Capital, and Shriram Finance. These peers also focus on diversified lending and technological adoption. Muthoot Finance is another key competitor, particularly strong in gold loans, a segment CGCL is expanding into.

What to Track Next

Key areas to monitor include:

• Subscription levels for the NCD issue from April 15 to April 28, 2026.
• The successful listing of the NCDs on BSE Limited post-allotment.
• How the company deploys the raised funds and their impact on asset growth and profitability.
• Any future updates on credit ratings or regulatory developments affecting the company.