Mangal Credit & Fincorp Board Approves ₹30 Cr NCD Issue at 11.75%

Mangal Credit & Fincorp Limited plans to raise ₹30 Crore by issuing Non-Convertible Debentures (NCDs) at an annual interest rate of 11.75%.

This debt funding aims to bolster the company's capital base, with the 11.75% borrowing cost adding to its financial expenses.

Board Approves Fundraise

Mangal Credit and Fincorp Limited's Board of Directors has approved raising funds via Non-Convertible Debentures (NCDs) through private placement.

The company will issue two tranches, one up to ₹10 Crore and a second up to ₹20 Crore, totaling ₹30 Crore.

These NCDs are secured, listed, rated, taxable, and redeemable, carrying a 11.75% annual interest rate.

The first tranche has a 21-month tenure, while the second is for up to 2 years and 3 months, with specific allotment and maturity dates set for May and September 2026/2028 respectively.

Purpose of the Fundraise

This fundraising is important for the NBFC, aiming to strengthen its capital base.

The funds will support ongoing financial needs and potential growth initiatives.

Issuing secured and listed NCDs is intended to enhance financial leverage and market access.

Company Background and Debt History

Mangal Credit & Fincorp Ltd is an Indian non-banking financial company (NBFC) focused on lending, including gold loans, loans against property (LAP), SME loans, and personal loans. NBFCs routinely raise funds through debt instruments like NCDs to meet their working capital and lending requirements.

The company has a consistent history of tapping debt markets. In March 2026, it successfully raised ₹30 crore via secured NCDs at an 11.75% coupon rate. Earlier, it issued NCDs totalling ₹15 crore in July 2025 and ₹10 crore in November 2025.

As of March 31, 2026, Mangal Credit & Fincorp's total outstanding borrowings stood at ₹332.73 crore. The company holds a 'BBB Stable' credit rating from CRISIL, indicating a moderate degree of safety regarding timely servicing of financial obligations.

Potential Impact

This debt issuance is expected to enhance the company's capital structure.

The move may bolster the company's capacity to disburse new loans and expand its Assets Under Management (AUM).

It demonstrates the company's access to capital markets for funding, diversifying its resource base.

Key Risks

A key risk is the 11.75% borrowing cost, which will increase the company's finance expenses.

As an NBFC, managing asset quality and ensuring timely collections remain ongoing operational challenges.

Sustained growth will require continued access to debt and equity markets.

Industry Context

Companies like IIFL Finance, Muthoot Finance, and Manappuram Finance operate in similar NBFC segments, relying on debt capital for funding. These peers also regularly issue NCDs to manage their balance sheets. Interest rates for secured NCDs issued by NBFCs, like this current issuance by Mangal Credit, typically vary but are plausible within market ranges.

Financial Snapshot

• Total outstanding borrowings: ₹332.73 crore (as of March 31, 2026)
• CRISIL Credit Rating: BBB / Stable (as of December 31, 2025)
• Average borrowing cost: 11.3% (first six months of FY26)

What to Watch

Investors will monitor the successful allotment and listing of these NCDs on the stock exchange.

The utilization of funds in lending operations and portfolio growth will be observed.

Future capital raising plans and any changes in the company's credit rating are also key points.

The company's asset quality metrics and net interest margins in upcoming reports will be important.