Capri Global Capital Limited is offering a public issue of secured, rated, listed Non-Convertible Debentures (NCDs). The issue has a base size of ₹1,000 million, which can be expanded up to ₹5,000 million. The NCDs are set to open on April 15, 2026, and will mature between 24 to 120 months, with coupon rates up to 9.00% per annum.
The NCD Offering
Capri Global Capital announced its plan for this public issue of secured, rated, listed, redeemable Non-Convertible Debentures (NCDs).
This Tranche I Issue aims to raise a base amount of ₹1,000 million. The company has the option to retain oversubscription up to ₹4,000 million, potentially bringing the total issuance to ₹5,000 million.
These NCDs are part of the company's larger shelf limit of ₹20,000 million for such issuances.
The offering is scheduled to open on April 15, 2026, and close on April 28, 2026. Listing is planned on BSE Limited.
Purpose of the Issue
The NCD issuance is designed to strengthen the company's capital base, boosting its financial capacity.
This stronger capital structure is important for supporting Capri Global Capital's lending operations and future growth plans across its various business segments.
Capri Global's Business
Capri Global Capital Limited operates as a leading Non-Banking Financial Company (NBFC). It focuses on a diverse range of lending activities, including MSME financing, housing finance, and used car loans, serving both retail and wholesale clients.
The company has a history of using debt markets, including regular NCD issuances, to fund its expanding loan book.
This approach helps it keep capital adequacy ratios strong, generally well above regulatory requirements, to support its growth.
Financial Impact
- The company expects an increase in its long-term debt.
- Its capital adequacy ratios should improve, boosting its lending capacity.
- The raised funds will be used to support its core lending business activities.
- The NCDs are secured by a first pari-passu charge on its loan book and receivables, with a security cover of at least 1.10 times.
Potential Risks
The filing highlights potential execution risks. These include delays in allotment, refunds, listing, or dematerialised credit beyond set timelines. These delays could lead to penalties.
Failing to execute the Debenture Trust Deed within the specified time could result in a penalty of 2% annually on the debenture amount.
How Peers Fund Themselves
Capri Global Capital operates in the NBFC sector, where access to funding sources is vital.
Peers like Bajaj Finance and Aavas Financiers often use NCDs and other debt instruments to manage their asset-liability balance and fund growing loan portfolios.
These companies usually have strong security structures for their debt issuances, similar to Capri Global Capital's plan.
Investor Watchlist
- Investors will monitor the response to the NCD issue and the final amount raised.
- They will also track the timeline for listing the NCDs on BSE.
- It will be important to see how the raised capital is used and its impact on asset growth and profits.
- Monitoring the company's capital adequacy and asset quality metrics after the issue will also be key.