DMI Finance Raises Rs 1,455 Crore Through NCDs

Mumbai: Non-banking financial company DMI Finance has raised Rs 1,455 crore by issuing non-convertible debentures (NCDs) on a private placement basis.

The issue received aggregate bids of Rs 1,630 crore and attracted participation from a diverse set of investors, including mutual funds, alternative investment funds (AIFs), primary dealers, corporate and family offices, the company said in a release.

Morgan Stanley was consulted on the issuance. The NCDs have been rated ‘AA’ by Icra and carry tenures of up to 36 months.

The issue comprises six series. Of the total Rs 1,455 crore, Rs 100 crore has a maturity date of August 11, 2028, while Rs 300 crore each matures on September 12 and December 12, 2028, the company told PTI.

Another Rs 265 crore tranche matures on October 12, 2028, while Rs 325 crore and Rs 165 crore tranches mature on March 12 and September 12, 2029, respectively.

Five of the six series carry a coupon of 9.50 per cent per annum. The Rs 300-crore series maturing on December 12, 2028, carries a coupon of 9.22 per cent per annum, payable quarterly, and the other series have annual coupon payments.

The company will use the proceeds to support the growth of DMI Finance’s lending portfolio and meet its funding requirements.

“As we scale our business, maintaining a diversified and resilient funding profile remains an important priority for us. The capital raised will support our ability to meet the evolving credit needs of our customers while maintaining a disciplined approach to growth and risk management,” said Shivashish Chatterjee, co-founder and managing director of DMI Finance.

The company continues to access funding across banks, financial institutions and debt capital markets to support the growth of its lending business, the release added.

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