Shalibhadra Finance Limited (SFL) has completed a debt raise of Rs 195 mn through the issuance of secured, rated, and listed Non-Convertible Debentures (NCDs). The issue carries a coupon of 12 per cent per annum and has a two year tenure. Interest will be paid monthly while principal repayments are scheduled on a six monthly basis. The NCDs are rated ICRA BBB minus with a stable outlook and will be listed on the BSE wholesale debt segment.

The managing director indicated that the fundraise is intended to optimise the company’s liability profile and enhance financial flexibility to support lending operations. The proceeds will be deployed to strengthen small ticket asset financing across rural and semi urban markets where the company operates. The company emphasised that the structure supports efficient asset liability management and regular cash flows for investors through monthly coupons. The move was presented as aligned with disciplined growth and long term value creation objectives.

Shalibhadra Finance Limited is a retail focused non banking finance company with operations concentrated in Gujarat, Maharashtra and Madhya Pradesh. The firm maintains a network of over 60 branches offering small ticket financing and customised retail products including new and used two wheelers, four wheelers and property loans. It follows an asset backed lending model with emphasis on risk management and asset quality supported by governance and technology enabled operations. The company reported assets under management of over 2 bn and an active customer base exceeding 0.1 mn.

The NCD issue was structured as secured and listed on the BSE to provide transparency and secondary market access for investors. The company noted investor confidence in its business model and said the issuance will aid in optimising the overall cost of funds. Further enquiries can be directed to the company or its advisor as per the press release.