Mangal Credit and Fincorp Secures Rs 35 Crore via NCDs

Mangal Credit and Fincorp has allotted 3,500 secured, non-convertible debentures (NCDs) raising Rs 35 crore.
The debt carries an 11.50% annual coupon with a 23-month maturity set for August 9, 2028.

Reader Takeaway: This capital infusion supports lending, though shareholders should monitor the company's ability to meet monthly interest obligations.

What just happened

The board committee at Mangal Credit and Fincorp finalized the allotment of 3,500 NCDs on September 9, 2026. This move follows the initial board authorization granted on August 14, 2026. The NCDs are valued at Rs 1,00,000 per unit, bringing the total issuance size to Rs 35 crore.

Issuance Terms

The NCDs carry an interest rate of 11.50% per annum, payable on a monthly basis. The tenure for these instruments is 23 months, with a final maturity date of August 9, 2028.

Security and Compliance

To protect the interest of debenture holders, the company has provided a first-ranking, exclusive, and continuing charge on identified receivables. The company is contractually obligated to maintain a security cover of 1.05 times (105%) of the total outstanding principal at all times throughout the tenure of the debt.

What this means for investors

For investors, this issuance highlights the company's move to bolster its liquidity position through debt markets. While the security cover provides a degree of comfort, the fixed interest expense adds to the company's debt-servicing obligations. Investors should track the company’s cash flow management to ensure it can comfortably meet the monthly interest payments and the final redemption in 2028.