Prachay Capital NCD June 2026 Issue Review
Prachay Capital Ltd. (PCL) is an RBI registered non-deposit taking Non-Banking Financial Company - Investment and Credit Company falling under the Base Layer category, bearing registration No. N-13.02198 dated October 7, 2024 under Section 45-IA of the RBI Act. PCL caters to the finance needs of medium and large business through corporate credit and corporate bonds.
The company has established an integrated financial ecosystem together with its wholly-owned subsidiaries namely, Prachay Securities Private Limited (“PSPL”) and Prachay Investment Managers Private Limited (“PIMPL”), provides comprehensive credit and investment solutions including private credit, corporate bonds, facilitating issuance and trading of fixed income securities, providing investment solutions to institutional and high net-worth investors and managing debt focused AIF schemes. This structure allows it to originate, structure, invest, and distribute capital market-linked credit products, offering a comprehensive platform for both borrowers and investors.
The Company operates a dual-sided business model that facilitates the efficient flow of capital between investors seeking yield and businesses requiring growth-oriented financing. In essence, the Company functions as an intermediary between surplus capital and surplus opportunity, bridging the funding gap that persists for mid-sized businesses. On the liability side, the Company is engaged in sourcing of funds through issuing HYFI securities. These HYFI securities are structured to offer predictable returns to the investment needs of investors and corporates with surplus investible capital. The Company aims to institutionalise HYFI securities as a distinct asset class for the investors seeking high yields.
In the last three fiscals, its AUM marked growth at a CAGR of 24.78%. It operates from its head quarter and a corporate office situated at Pune. As of March 31, 2026, it had 70 employees on its payroll.
Issue Details / Capital History
The company is coming out with its 4th debt offer of 1000000 listed, rated, secured, redeemable, non-convertible debentures of face value of Rs. 1000 each, to mobilize over all Rs. 100 cr. The issue consists of Rs. 50 cr. for base size and a green shoe option of retaining oversubscription of Rs. 50 cr. The issue opens for subscription on June 05, 2026, and will close on or before June 18, 2026. The minimum application to be made is for 10 NCDs (Rs. 10000) and in multiple of 1 NCD (Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE only.
This debt offer is solely lead managed by SKI Capital Services Ltd., and KFin Technologies Ltd. is the registrar to the issue. Catalyst Trusteeship Ltd. is the debenture trustee.
The company is spending Rs. 4.57 cr. for this debt issue and from the net proceeds, it will utilize at least 75% for the purpose of onward lending, investment in its various schemes, repayment/prepayment of certain borrowings, and maximum up to 25% for general corporate purposes.
This debt offer has tenor of 36 months, 48 months and 60 months and carries a coupon rates ranging between 12.25% to 12.75% based on the series opted by the investors and has a monthly interest payment mode. The company has allocated 1% for Institutions, 9% for non-Institutional category, 40% for HNIs and 50% for Retail investors.
Issue Ratings
This debt offer is rated IVR BBB/Stable outlook by Infomerics Valuation & Rating Ltd. Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations and such securities carry moderate credit risk. The rating issued by IVR is live until withdrawn or changed and as available on IVR’s website.
The rating provided by the Credit Rating Agency may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions.
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted a total income/net profit of Rs. 36.74 cr. / Rs. 10.32 cr. (FY23), Rs. 42.54 cr. / Rs. 11.02 cr. (FY24), Rs. 58.15 cr. / Rs. 12.61 cr. (FY25), Rs. 70.73 cr. / Rs. 7.47 cr. It posted lower net profit on higher income for FY26 that remains major alert.
Its debt equity ratio of 2.97 as of March 31, 2026, will stand enhanced to 3.81 post this issue and raises alarm.
Conclusion
This is the 4th debt offer from the company since February 2025. The last debt offer from the company was in February 2026. This debt offer is rated BBB/Stable by IVR and offers 12.25% to 12.75% coupon rates based on series selected. For this debt offer, the company has changed its lead manager as well as the credit rating agency. The company has reduced the coupon rates by 25 bps for all categories. Though it appears very lucrative, poor rating raise caution. There is no harm in skipping this risky bet with poor rating.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
