Capri Global Capital Plans ₹2000 Crore NCD Issuance for Expansion

Capri Global Capital Limited is set to raise significant capital by issuing up to ₹20,000 million (₹2,000 crore) in secured, rated, listed, and redeemable non-convertible debentures (NCDs). The company's Management Committee approved the draft shelf prospectus on March 23, 2026, following earlier board approval this month.

Funding NBFC Expansion

This NCD issuance is a key step for the Non-Banking Financial Company (NBFC) to strengthen its balance sheet and secure funds for its growth strategy across various lending segments. Access to capital is vital for NBFCs to support lending operations and expansion plans.

History of Capital Raising

Capri Global Capital has a track record of raising funds from capital markets for growth. In June 2025, it successfully raised ₹2,000 crore through a Qualified Institutional Placement (QIP). Previously, it raised ₹1,440 crore via a rights issue in March 2023. The company also planned a significant USD 1 billion Global Medium Term Note (GMTN) program in January 2026, showing its strategy to use various funding sources. The company consistently achieves high credit ratings, such as 'AA' from Infomerics and Acuite, reflecting market confidence in its financial health.

Key Benefits

The planned issuance will boost available capital for lending. It also diversifies the company's debt funding alongside bank loans and other instruments. The offering provides investors a chance to buy into a rated NBFC debt instrument, allowing capital to be deployed into its MSME, housing, gold, and other lending areas.

Potential Challenges

The success of the issuance depends on investor appetite for NCDs at current rates. Timely interest and principal payments are critical for this debt instrument. While this is a standard fundraising activity, past regulatory actions, like a 2023 SEBI penalty for share manipulation, emphasize the need for ongoing compliance.

Competitive Landscape

Capri Global Capital operates in a competitive NBFC market alongside peers such as Bajaj Finance, Shriram Finance, and Muthoot Finance. While larger competitors have broader market reach, Capri stands out by focusing on MSME, affordable housing, and its fast-growing gold loan segment. Many NBFCs, including Muthoot FinCorp and IIFL Finance, often use NCDs to fund operations and growth.

Key Financial Metrics

As of Q1 FY26:

• Capri Global Capital's consolidated Assets Under Management (AUM) was approximately ₹24,754 crore.
• The company's consolidated Net Worth stood at ₹6,438 crore.
• The consolidated Debt/Equity ratio was 2.5x.

Looking Ahead

Investors will track the formal prospectus filing with coupon rates, tenures, and terms. Monitoring investor subscriptions during the offering and the successful listing on stock exchanges will be key. The company's loan book performance and asset quality metrics post-fundraising, along with how the new debt impacts capital adequacy ratios, will also be important indicators.