- Issue Size: Base issue of ₹5,000 lakh, with an option to retain oversubscription up to ₹5,000 lakh, totaling ₹10,000 lakh.
Instrument: Listed, Rated, Secured, Redeemable Non-Convertible Debentures (NCDs) of ₹1,000 each.
Credit Rating: Rated BBB-/Stable by CRISIL, indicating moderate safety and credit risk.
Issue Opens: 28 February 2025, with a maximum period of 10 working days.
BILKULONLINE
Ahmedabad, Feb 18: Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has announced the public issue of its Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) to raise up to ₹10,000 lakh.
The BBB-/Stable CRISIL-rated NCDs offer investors a 13% p.a. return with monthly interest payments, making it a fixed-income investment opportunity. The proceeds from this issue of NCDs will be primarily used for the stated fund utilization.
Prachay Capital Limited Public Issue of Secured NCDs to open on 28 February 2025: With zero delays in servicing liabilities, 0% Gross NPA, and impressive financial metrics like a 46.61% CAGR growth in AUM, Prachay Capital continues to maintain strong performance and growing market confidence.
Founder of Prachay Capital Girish Lakhotiya Reflects on Success: “Our Commitment to Excellence Drives Our Unwavering Growth – Our core philosophy has always been focused on providing timely and efficient service while maintaining the highest standards of financial health, ensuring that every step we take is aimed at long-term sustainability for our investors.”
Prachay Capital has zero delays in servicing liabilities and has Gross NPA of 0% on its Assets Under Management (AUM). The Company’s AUM has grown at a CAGR of 46.61% from ₹ 13,291.94 lakh as at March 31, 2022 to ₹ 28,569.77 lakh, as at March 31, 2024 and has return on equity (ROE) above 17% post tax over the last three financial years.
The Company’s Net Interest Margin (NIM) for the last three financial years ending on March 31, 2024, March 31, 2023 and March 31, 2022 stood at 8.40%, 9,49% and 11.02%, respectively and Company’s Return on Total Assets (ROTA) have been in range of 4% to 5% for the same period. As on quarter and six months period ended September 30, 2024, the Company’s Capital Risk Adequacy Ratio (CRAR) was 27.32%.
With BSE listing, the issue is open for subscription by retail individual investors, high-net-worth individual investors (HNIs), institutional investors, and corporates. For details relating to eligible investors, see “Issue Structure” beginning on page 189 of the Prospectus.In the first half of fiscal 2025, 607 different issuers tapped the corporate bond market, issuing bonds totalling Rs 5.11 lakh crore.
In the fiscal 2025, the corporate bond market saw 200+ new issuers, reflecting growing confidence and participation in the debt market. Moreover, AAA-rated corporate bonds dominated the bond market with ~67% issuances in the first half of fiscal 2025.Girish Lakhotiya is the founder and CEO of Prachay Capital. Prachay Capital is a non-banking financing firm that provides financial solutions to businesses.
Fund Utilization:
- Minimum 75% for the purpose of onward lending, investments in current and future AIF schemes of our alternate asset management business managed by our subsidiary Prachay Investment Managers Private Limited, repayment/ pre-payment, in full or in part, of certain outstanding borrowings availed by our Company.
- Maximum 25% for general corporate purposes.
Security & Collateral:
- Secured by first ranking pari passu charge with existing secured creditors/ lenders, on all present and future loan receivables, receivables from investment in debentures, receivables from investments in the units of AIFs, balance with banks, fixed deposits and any other present and future receivables.
- Security Cover: Minimum 100% of the outstanding principal and interest due thereon at all times.
Tenor:
- 5 years (i.e.,1826 days)*
*Subject to exercise of call option by the Company at any time after the period of 1 (one) year from the Deemed Date of Allotment of NCDs under the terms of the Prospectus
Redemption & Default Terms:
- Monthly coupon payments + Principal repayment at maturity, if no call option is exercised by the Company under the terms of the Prospectus.
- Default Interest Rate: 2% p.a. over the coupon rate for the defaulting period.
Lead Managers & Issue Partners:
- Lead Manager: Galactico Corporate Services Limited
- Debenture Trustee: Catalyst Trusteeship Limited
- Registrar to the Issue: KFin Technologies Limited
- Legal Counsel: Khaitan & Co.
Girish Lakhotiya, the MD of the company is a Chartered Accountant, possesses a sharp mind for visualizing and translating success stories for mid to large-sized companies. His expertise extends to securing investments and funding with remarkable intelligence. As the Managing Director of Prachay Capital Limited, Girish is leading his team of skilled and capable professionals. Together, they are establishing a strong presence, with Girish carving out a distinct niche for both himself and his company. He addressed the media on Tuesday at Ahmedabad.
Vishal Sancheti from Galactico Corporate Services Limited was also present at the occasion and interacted with the media.
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