In a move aimed at strengthening its capital base, Equitas Small Finance Bank Limited (Equitas SFB) on Monday, July 21, 2025, announced that its Board of Directors has approved raising capital through Non-Convertible Debentures (NCDs) amounting to ₹500 crore. The capital raise includes a green shoe option of ₹250 crore, allowing the bank to retain additional subscription if required.

The decision was taken at the Board meeting held between 12:30 PM and 1:40 PM and has been disclosed under Regulation 30 of the SEBI (LODR) Regulations, 2015.

According to the regulatory filing, the bank will issue up to 50,000 Rated, Listed, Unsecured, Subordinated, Redeemable, Fully Paid-Up NCDs of face value ₹1 lakh each, with the full issue categorised as Lower Tier II Capital under the Basel II Capital Adequacy framework.

The proposed private placement will be made to eligible institutional investors, and the NCDs will be listed on BSE Limited post-allotment. While the tenure, coupon rate, and repayment schedule will be decided by the Board in due course, the instrument will carry no special privileges or rights, and no security charge will be created as the debentures are unsecured in nature.

This strategic issuance will support the bank’s ongoing efforts to maintain a strong capital position amidst expanding operations and regulatory requirements.

As clarified in the accompanying compliance annexure, there have been no defaults or delays in interest or principal payments by the Bank in the past, and this issue is not a result of any such situation.

The disclosure also reaffirms Equitas SFB’s compliance with SEBI’s latest circular on debt issuance reporting norms (Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024). The bank assured that relevant details will be made available on its website www.equitasbank.com.

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