Purple Finance Completes Rs 15 Crore NCD Issuance

Purple Finance Limited has successfully placed Rs 15 crore in non-convertible debentures. The issuance was finalized on September 28, 2026, through a private placement to institutional investors.

Reader Takeaway: Company secures Rs 15 crore at 11.90% coupon, adding to interest obligations through April 2029.

What just happened

The Finance Committee of Purple Finance Limited approved the allotment of 15,000 NCDs, each with a face value of Rs 10,000. Ambium Finserve Limited subscribed to Rs 10 crore of the issue, while Fourdegreewater Capital Private Limited subscribed to the remaining Rs 5 crore. These instruments are senior, secured, and listed.

Why this matters

This debt raise provides the company with fresh liquidity to support its operations or lending activities. The interest rate of 11.90% per annum, paid monthly, represents a commitment of recurring interest expenses for the company over the next 30 months until the maturity date of April 5, 2029.

Instrument Terms and Security

The debentures are backed by an unattested Deed of Hypothecation. This creates a first-ranking pari passu charge over the company's book debts and loan receivables in favor of the Debenture Trustee. The terms stipulate that in the event of any payment default, an additional interest penalty of 2% per annum will apply over the base rate. Principal repayment is structured across five installments.

Risks to watch

Investors should monitor the company's liquidity position and its ability to service the monthly interest payments. As the company relies on its book debts as collateral, any significant decline in asset quality or collection efficiency could impact its capacity to maintain these debt obligations comfortably.