IndoStar Capital Finance Limited, a prominent non-banking financial company (NBFC), announced the allotment of ₹400 crore worth of senior, secured, redeemable, rated, listed, and taxable non-convertible debentures (NCDs) on a private placement basis. The development was communicated through a regulatory filing dated June 19, 2025, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Terms of the NCD Issue

The company has issued two tranches of NCDs, designated as:

• 9.40% ICFL 25-26/Series XXVI 2027

• 9.40% ICFL 25-26/Series XXVII 2027

Together, these series comprise 40,000 debentures, each with a face value of ₹1,00,000, aggregating to a total issue size of ₹400 crore.

These NCDs are to be listed on the Wholesale Debt Market (WDM) Segment of BSE Limited, thereby providing institutional investors with an opportunity to invest in secure, high-yield instruments with annual coupon payments.

Series Structure and Tenor

The two NCD series differ slightly in tenor:

• Series XXVI – 24-month tenor, maturing on June 18, 2027

• Series XXVII – 25-month tenor, maturing on July 19, 2027

The coupon rate for both series is 9.40% per annum, payable annually, with principal repayment on maturity. The detailed schedule of payments for each series is included in the annexure provided by the company.

Coupon and Redemption Payment Schedule

Series XXVI (₹225 crore)

Series XXVII (₹175 crore)

These payments are governed by the working day convention, as defined in the company’s General Information Document and Key Information Document.

Security Structure

The NCDs are secured through a first pari-passu charge on a defined pool of assets, including:

• Receivables or asset portfolio of the company not overdue by more than 90 days

• Cash equivalents and unencumbered treasury assets

• All other secured assets, excluding loans or investments in subsidiaries

This charge has been created in favour of the Debenture Trustee for the benefit of all secured parties, as per the terms defined in the Debenture Trust Deed.

No Defaults or Delays Reported

As of the date of this disclosure:

• There have been no delays in payment of interest or principal.

• No defaults have occurred exceeding three months from due dates.

• No adverse comments or observations were received from regulators.

Listing and Market Visibility

The company confirmed that the NCDs would be listed on the BSE Wholesale Debt Market Segment, ensuring transparency and liquidity for potential secondary trading.

This listing enhances market access for IndoStar Capital while giving institutional investors a clear line of sight into the company’s debt servicing commitments and creditworthiness.

Compliance and Disclosure

The announcement was made via a Borrowing Committee circular resolution (No. 02/2025-26). The communication was formally submitted to BSE and NSE, where IndoStar Capital’s equity shares are listed under scrip code 541336 and symbol INDOSTAR respectively.

The company also uploaded the disclosure on its official website: www.indostarcapital.com

Strategic Importance of the Issuance

Raising ₹400 crore through listed NCDs reinforces IndoStar Capital’s financial strength, market credibility, and commitment to disciplined debt practices. These funds are likely to be deployed to:

• Expand loan book within secured asset categories

• Manage working capital requirements

• Refinance existing debt at efficient interest cost levels

With a 9.40% annual yield, the issue is attractive for investors, especially in a tightening interest rate environment where reliable, secured instruments are in demand.

Conclusion

With this ₹400 crore NCD issuance, IndoStar Capital Finance Limited has further cemented its place in the Indian debt capital market. The company’s focus on structured private placements, strong asset backing, and timely disclosures enhances its standing among stakeholders, including investors, regulators, and rating agencies.

As it continues to grow within the Indian NBFC landscape, IndoStar’s prudent capital-raising strategies ensure stable long-term financial planning, risk-mitigated borrowing, and institutional investor confidence.

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