Supra Pacific Financial Approves ₹200 Cr NCDs, Relocates Office for Expansion

The board of Supra Pacific Financial Services Ltd has approved the issuance of Non-Convertible Debentures (NCDs) worth ₹200 crore, maturing in two years. The company is also relocating its registered office within Mumbai.

Board Approvals

In a meeting held on April 2, 2026, the board of Supra Pacific Financial Services Ltd greenlit the issuance of ₹200 crore in NCDs. These debentures will have a two-year tenure. They will offer interest rates of 11.60% with monthly payouts or 11.75% with yearly payouts.

Additionally, the board approved relocating the company's registered office from its current location to Kanakia Wallstreet, Andheri East, Mumbai. A dedicated Debenture Committee has been established to oversee the NCD allotment process.

Strategic Rationale

The ₹200 crore raised through NCDs is intended to strengthen Supra Pacific Financial's capital base, providing funds for its lending operations and growth plans. The office relocation to a modern facility like Kanakia Wallstreet aims to improve operational efficiency and accommodate future business expansion.

Company Background

Supra Pacific Financial Services operates as a Non-Banking Financial Company (NBFC), offering gold loans, auto loans, business loans, and microfinance. Like many NBFCs, it regularly uses debt instruments such as NCDs to fund its operations and growth. The company has a history of issuing NCDs and has reported growth in its Assets Under Management (AUM) and revenue. It has also been expanding its physical branch network across India.

Expected Impact

Shareholders may see an improved capital structure following the NCD issuance, which could support future lending and profitability. The office move is expected to enhance operational synergy and create a better environment for business development and employee productivity.

Risks to Watch

Supra Pacific Financial Services has a significant debt-to-equity ratio of 376.7%, which has risen over the past five years. The company's operating cash flow is negative, raising concerns about its ability to cover debt obligations from core operations. The interest coverage ratio is reported as low or unavailable, indicating potential challenges in servicing its debt.

Peer Comparison

Operating in a competitive NBFC market, Supra Pacific Financial faces peers like Paisalo Digital Limited and Sakthi Finance Limited, which also use NCDs for funding. Larger entities such as Muthoot Finance and Power Finance Corporation are also major players in the financial services sector.

What to Track Next

Investors will monitor the completion of the ₹200 crore NCD allotment by the Debenture Committee. The formal commencement of operations from the new registered office will also be a key development. Crucially, the company's ability to manage its increased debt levels and maintain asset quality during its growth phase will be closely watched.