Arka Fincap’s Public Issue of upto Rs 30 lakh of Secured, Rated, Listed, Redeemable NCDs

Mumbai, Dec 06:Arka Fincap Limited has announced public issue of secured, rated, listed, redeemable non-convertible debentures of face value of Rs 1,000 each (“NCDs” or “Debentures”) for an amount of Rs 15,000 lakh (“Base Issue Size”) with an option to retain oversubscription up to an amount of Rs 15,000 lakh (“Green Shoe Option”) amounting to ₹ 30,000 lakh (“Tranche I Issue Limit”) (“Tranche I Issue”).

The Lead Managers to the Issue are JM Financial Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited).

Vimal Bhandari, Executive Vice Chairman & CEO, Arka Fincap Limited said, “We are delighted to launch the Tranche I Issue of the NCDs. We are a professionally managed organization part of the

Kirloskar Group, primarily engaged in providing structured secured term financing solutions to corporates, real estate and urban infra financing, loans to SMEs & MSMEs and personal finance loans to borrowers in India. With our focus on our customers, experienced management team and vigilant monitoring of our assets, our business has experienced growth since the commencement of our operations in Fiscal 2019. We believe that we have a well-diversified funding profile that underpins our strong liquidity management system, our strong credit rating and brand equity. The public issue of NCDs is in line with our strategy of liability diversification.

The NCDs offer Coupon Rate ranging from 9.00% to 10.00% per annum with quarterly and annual interest option. The NCDs have three tenors of 24 months, 36 months and 60 months. Please refer to the table on Issue Structure below on coupon rates and tenors for each series of NCDs. The NCDs are proposed to be listed on BSE Limited.

At least 75% of the funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Tranche I Issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021.