Whalesbook
Unifinz Capital India Ltd has secured approval to raise ₹35 crore through Non-Convertible Debentures (NCDs) carrying a 13% annual interest rate. The company also has the option to raise an additional ₹20 crore, bringing the potential total to ₹55 crore.
Issuance Details
The Finance Committee's approval covers 35,000 NCDs, each valued at ₹10,000. These debentures are scheduled to mature on April 23, 2028. The interest rate is fixed at 13.00% annually, payable monthly. This debt is secured against identified book debts and receivables, with a minimum security cover of 1.20 times the NCD value.
Purpose of Funding
The capital raised is intended to bolster Unifinz Capital's operations, support its retail lending activities under the 'lendingplate' brand, expand its loan portfolio, and manage working capital. This move aligns with the Non-Banking Financial Company's (NBFC) strategy of funding growth through debt markets.
Investor Appeal and Leverage
For investors, the NCDs offer a fixed yield of 13% per annum. However, the issuance will increase the company's overall leverage and its debt-to-equity ratio, leading to higher interest expenses that could impact future profitability.
Company Context and Metrics
Unifinz Capital operates as a retail lending NBFC. As of December 31, 2025, its net worth stood at ₹145 crore with a gearing of 1.2 times. The company reported average monthly collections of around ₹222 crore in the six months prior to February 25, 2026, and had total outstanding debt of approximately ₹177 crore at the end of 2025.
Risks and Next Steps
A key risk for investors is any default on interest or principal payments extending beyond three months, which would incur an additional 4% annual interest on the outstanding amount. Investors will be monitoring the successful allotment and listing of these NCDs on the BSE Wholesale Debt Market. Future tracking will focus on how Unifinz Capital utilizes the funds, its impact on asset growth, and its ongoing debt servicing capability against its revenue and profit.
Industry Landscape
Unifinz Capital operates within the NBFC sector, competing with larger entities like Bajaj Finance and Muthoot Finance, as well as other listed firms such as MAS Financial Services, all of whom also depend on debt markets for funding.