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Arka Fincap Limited announces that its maiden Tranche I public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs) has been successfully completed and the Tranche I Issue has been oversubscribed more than 100% with a subscription worth approximately Rs. 30,800 Lakhs. The Tranche I Issue witnessed active participation from more than 3000 investors from diversified segments. The NCD issue category with 36-month tenor attracted approximately 70% of the total demand.

The Tranche I Issue had a base issue size of Rs.15,000 lakhs with an option to retain oversubscription up to Rs. 15,000 lakhs, aggregating to a tranche limit of Rs.30,000 lakhs. Tranche I Issue opened on December 7, 2023 and closed on December 20, 2023. The NCDs will be listed on BSE Limited.

Mr. Vimal Bhandari, Executive Vice Chairman & CEO, Arka Fincap Limited said," We are thrilled by the positive response to our NCD issue. It underscores the confidence that investors from diverse backgrounds place in our business model, highlighting a strong demand for top-tier financial instruments with attractive interest rates. This robust support reinforces our commitment to delivering excellence in the country's vibrant financial services ecosystem."

The NCDs with credit rating - CRISIL AA-/Positive by CRISIL Ratings Limited offered Coupon Rate ranging from 9.00% to 10.00%* per annum with quarterly and annual interest option. The NCDs have three tenors* i.e., 24 months, 36 months and 60 months.

At least 75% of the funds received through this Tranche I Issue will be used for the purpose of onward lending, financing and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount received in the Tranche I Issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“SEBI NCS Regulations”) and Shelf Prospectus read with Tranche I Prospectus each dated November 28, 2023**.

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