AAVAS Financiers Limited has announced the approval of a significant capital raise through the issuance of secured non-convertible debentures (NCDs) aggregating up to ₹200 crore via private placement, as per the outcome of the Executive Committee Meeting of the Board of Directors held on June 18, 2025.

This move is in line with the authority granted by shareholders through a special resolution passed during the company’s 14th Annual General Meeting on 7th August 2024.

Instrument Details

The NCDs being issued are:

Repayment and Security Structure

AAVAS Financiers will repay principal in 20 equal instalments, each amounting to ₹5,000 per debenture. The final redemption will occur at the end of the 60-month period, unless the instruments are redeemed earlier.

The issue is fully secured, with a first-ranking exclusive hypothecation charge over identified receivables of the company, ensuring a coverage of at least 110% of the total outstanding principal and interest.

Regulatory Compliance

The issuance complies with:

• Companies Act, 2013

• SEBI (LODR) Regulations, 2015

• SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021

• And other applicable regulatory frameworks.

The details are also published on the official website of the company at www.aavas.in.

Other Disclosures

• Delay in Payment: Not applicable; no default.

• Redemption Method: Not applicable (no early redemption planned at this stage).

• Comments or Letters from Regulators: None.

• Special Rights/Privileges: To be defined in the Key Information Document.

• Coupon and Maturity Details: Will be available in the KID.

The meeting commenced at 03:30 PM IST and concluded at 03:34 PM IST on June 18, 2025.

Strategic Outlook

This issuance will help diversify AAVAS Financiers’ funding sources and support its lending operations, especially in housing finance, without impacting promoter equity or shareholder dilution.

The structure, with secured repayment over five years, quarterly income visibility for investors, and minimal credit risk due to overcollateralisation, positions the issuance as a strong debt instrument in the current market scenario.

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