Allots NCDs worth Rs. 15,00,00,000 on private placement at 11.90% coupon
Purple Finance has allotted 15,000 secured NCDs of Rs. 10,000 each, totalling Rs. 15,00,00,000.
- Total NCD Issue Size
- Rs. 15,00,00,000
- Coupon Rate
- 11.90% per annum, paid monthly
- Tenure
- 30 Months and 8 Days (September 28, 2026 to April 05, 2029)
- Allottees
- Ambium Finserve Limited (Rs. 10,00,00,00,000) and Fourdegreewater Capital Private Limited (Rs. 5,00,00,000)
- Security
- First ranking pari passu charge on identified book debts/loan receivables
What happened
The Finance Committee of the Board, by circular resolution dated September 28, 2026, approved the allotment of senior, secured, rated, listed, redeemable, transferable, INR-denominated non-convertible debentures on a private placement basis.
- 10,000 NCDs of face value Rs. 10,000 each, aggregating Rs. 10,00,00,000, to Ambium Finserve Limited
- 5,000 NCDs of face value Rs. 10,000 each, aggregating Rs. 5,00,00,000, to Fourdegreewater Capital Private Limited
- Total issue size up to Rs. 15,00,00,000
Key terms
- Coupon: 11.90% per annum, payable monthly
- Tenure: 30 Months and 8 Days, allotted September 28, 2026, maturing April 05, 2029
- Principal repaid in 5 installments, with the final principal payment on the maturity date
- Listing: the debentures will be listed on BSE Limited
- Security: a first ranking pari passu and continuing charge in favour of the Debenture Trustee over identified book debts/loan receivables, under a Deed of Hypothecation, plus such other security interest as may be agreed
- On any payment default, additional interest of 2% per annum over the interest rate applies on outstanding principal until cured or redeemed
Why it matters
Purple Finance is a lending business, so borrowed funds are its raw material. This allotment brings in fresh debt capital that a lender typically uses to grow its loan book. The cost of this money is fixed at 11.90% a year, and the company has committed to monthly interest payments and staggered principal repayment over roughly two and a half years.
Being on a private placement basis means the debentures were offered to two identified institutional investors rather than to the public. Equity shareholders are not diluted, since these instruments are non-convertible.
Points to watch
- Interest cost of 11.90% relative to the yields the company earns on its own lending
- The charge created on book debts, which ties a portion of receivables to these debenture holders
- Timely servicing of the monthly coupon and the five principal installments
More numbers
- Total NCDs allotted15,000 (Fifteen Thousand)
- Total issue sizeRs. 15,00,00,000 (Rupees Fifteen Crores Only)
- Face value per NCDRs. 10,000/-
- NCDs to Ambium Finserve Limited10,000 (Ten Thousand)
- Amount from Ambium Finserve LimitedRs. 10,00,00,000/- (Rupees Ten Crores Only)
- NCDs to Fourdegreewater Capital Private Limited5,000 (Five Thousand)
- Amount from Fourdegreewater Capital Private LimitedRs. 5,00,00,000/- (Rupees Five Crores Only)
- Coupon rate per annum11.90%
- Tenure (months portion)30 (Thirty) Months
- Tenure (days portion)8 (Eight) Days
- Principal repayment installments5 (five) installments
- Additional interest on payment default2% (two percent) per annum
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