Unifinz Capital Secures ₹315 Cr Via NCDs, Declares ₹0.50 Interim Dividend

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AuthorRiya Kapoor|Published at:
Unifinz Capital Secures ₹315 Cr Via NCDs, Declares ₹0.50 Interim Dividend
Overview

Unifinz Capital India Limited's board has approved raising ₹315 crore through Non-Convertible Debentures (NCDs) and declared an interim dividend of ₹0.50 per share. This dual move aims to strengthen the company's capital base while rewarding shareholders. The Finance Committee will finalize the NCD terms, impacting the company's debt structure.

Unifinz Capital Raises ₹315 Cr Via NCDs, Declares ₹0.50 Dividend

Unifinz Capital India Limited announced it will raise up to ₹315 crore through Non-Convertible Debentures (NCDs). The company also approved an interim dividend of ₹0.50 per share.

Today's Filing Details

Unifinz Capital India Limited's board of directors met on March 28, 2026, to discuss capital raising and shareholder returns.

The board approved issuing Non-Convertible Debentures (NCDs) worth up to ₹315 crore. This move is intended to strengthen the company's capital structure and fund its business operations.

The board also approved an interim dividend of ₹0.50 per equity share, with a record date set for April 6, 2026. This offers a direct return to shareholders.

The Finance Committee has been authorized to finalize the specific terms and conditions for the NCD issuance, including interest rates and maturity periods, subject to market conditions and necessary approvals.

Why This Matters

The NCD issuance is a critical step for Unifinz Capital to access substantial funds, potentially supporting future growth or expanding its lending portfolio.

However, it will increase the company's debt burden and lead to higher interest payments, potentially impacting profitability.

The interim dividend offers immediate returns to shareholders, reflecting the company's confidence in its performance and cash flow generation.

Historical Context

Unifinz Capital India Limited has a track record of utilizing NCDs for fundraising. The company previously approved an NCD issuance of ₹315 crore in February 2026, ₹100 crore in December 2023, and ₹200 crore in March 2023.

Shareholders have also received dividends historically. Unifinz Capital declared an interim dividend of ₹0.50 per share in March 2025, along with a ₹0.50 dividend for FY2022-23 and another interim ₹0.50 dividend in March 2023.

What Changes Now

  • Debt levels will rise from the ₹315 crore NCD issuance.
  • Interest expenses are forecast to increase, affecting net profit.
  • Shareholders will receive a ₹0.50 interim dividend.
  • Raised capital could support business expansion or asset growth.
  • Final NCD terms are still pending from the Finance Committee.

Risks to Watch

The planned ₹315 crore NCD issuance will increase Unifinz Capital's debt and interest expenses. The final terms of these debentures, to be set by the Finance Committee, will determine the exact financial impact and are subject to market conditions and approvals.

Peer Comparison

Established NBFCs like MAS Financial Services, Cholamandalam Investment and Finance Company, and Poonawalla Fincorp also regularly tap debt markets through NCDs to fund their operations and growth.

These companies rely on their creditworthiness and market access to secure funds for their expanding lending books. Unifinz Capital's strategy aligns with industry practices for capital-intensive financial businesses.

What to Track Next

  • The Finance Committee's finalization of the terms and conditions for the Non-Convertible Debenture issuance.
  • The exact date of the NCD issuance and subsequent listing.
  • The payment and dispatch of the interim dividend to shareholders following the record date.
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