Arka Fincap Limited NCD

Arka Fincap Limited is an NBFC-ML registered with RBI. They are a professionally managed organization part of the Kirloskar Group, primarily engaged in providing structured term financing solutions to corporates, real estate and urban infra financing, loans to micro, small and medium enterprise (“MSME”) and personal finance loans to borrowers in India. With their focus on their customers, experienced management team and vigilant monitoring of their assets, their business has experienced growth since the commencement of their operations in Fiscal 2019. They operate four principal lines of business, namely corporate lending, real estate and urban infra financing. MSME lending and personal lending. The total Loan Book as of September 30, 2023, March 31, 2023, March 31, 2022 and March 31, 2021 was ₹ 4,03,319.32 lakhs, ₹ 3,96,027.04 lakhs, ₹ 2,37,987.91 lakhs and ₹ 1,12,433.35 lakhs, respectively.

Arka Fincap Limited is coming out with a debt offering of Secured Redeemable Non-Convertible Debentures with a face value of ₹ 1000 each, a Base Issue size of ₹ 150 Crores, and an option to retain oversubscription up to ₹ 150 Crores aggregating up to ₹ 300 crores, being the Tranche-I Issue size. The issue opens for subscription on Thursday, 7th December 2023, and will close on or before Wednesday, 20th December 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.

Arka Fincap Limited NCD Details:

Tranche I Issue opens: Thursday, 7th December 2023
Tranche I Issue closes: Wednesday, 20th December 2023
Allotment: First Come First Serve Basis
Face Value: Rs.1,000 per NCD
Nature of Instrument: Secured, Rated, Listed, Redeemable, Non-Convertible Debentures
Minimum Application: 10 NCDs (Rs.10, 000) & in multiple of 1NCD
Listing: BSE
Credit Rating “CRISIL AA-/Positive (pronounced as CRISIL double A minus rating with Positive outlook) by CRISIL Ratings Limited
Tranche-I Issue Size ₹ 150 Crores (“Base Issue Size”), with a green shoe option up to ₹ 150 Crores amounting to ₹ 300 Crores (“Tranche I Issue Limit”)
Minimum Subscription: Minimum subscription is 75% of the Base Issue, i.e., ₹ 100 crores
Registrar: Link Intime India Private Limited
Category I – Institutional (“QIB”) II – Non-Institutional (“Corporates”) III – High Net worth

Individual (“HNI”)

(Amount aggregating to

above ₹ 10 lakh)

IV – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh)
Category Allocation of the overall Issue Size 25% 25% 25% 25%
Bucket Size (₹) assuming Issue size of ₹ 300 Cr ₹ 75 Cr ₹ 75 Cr ₹ 75 Cr ₹ 75 Cr

Arka Fincap Limited NCD

Application form

Arka Fincap Limited NCD Specific Terms of the Prospectus:

The terms of the NCDs offered under the Issue are as follows:

Series I II III IV* V VI
Frequency of Interest Payment Quarterly Annual Quarterly Annual Quarterly Annual
Tenor 24






36 months 60 months 60 months
Coupon Rate (% p.a.) for NCD Holders in:
Category I, II, III & IV 9.00% 9.30% 9.30% 9.65% 9.65% 10.00%
Effective Yield (% p.a.) for :
Category I, II, III & IV 9.29% 9.29% 9.62% 9.64% 9.99% 9.99%
Amount (₹ / NCD) on Maturity for ^ :
Category I, II, III & IV ₹1,000 ₹1,000 ₹1,000 ₹1,000 ₹1,000 ₹1,000
Interest Frequency Quarterly Annual Quarterly Annual Quarterly Annual

*The Company shall allocate and allot Series IV NCDs (IV Option) wherein the Applicants have not indicated the choice of the relevant NCD Series

Arka Fincap Limited NCD Conclusion:

With nominal returns potentially going into double digits, this is an attractive proposition due to the current scenarios from a return perspective, which will provide a regular monthly income for up to 5 years. The allotment is on a first come first serve basis. As the NCD is going to be listed on BSE as well as NSE one can always encash the amount invested as one desires, and due to the availability of the NCD in only Demat form, one must have a Demat account opened to apply.