Arman Financial Services allots CCDs and OCRPs worth INR 115 crore on a preferential basis

Arman Financial Services Limited, Category A Non-Banking Finance Company (NBFC), has announced that the Board of Directors has approved the allotment of securities worth INR 115 crore to marquee investors on a preferential basis.

- Allotment of 6,24,388 Unsecured Compulsorily Convertible Debentures ("CCDs") on preferential basis to Investors belonging to non-promoter category. The total amount raised is approximately Rs. 76.80 crore. Some of the marquee investors include fund(s) controlled by Singapore based Sixteenth Street Capital and USA based Seven Canyons Advisors. Other investors include both domestic and foreign individuals.

- Allotment of 3,10,972 Optionally Convertible Redeemable Preference Shares ("OCRPS") on preferential basis belonging to non-promoter category. The total amount raised is approximately Rs. 38.25 crore. The investors include a mix of individuals and family offices.

Commenting on allotment, Mr. Jayendra Patel, Vice-Chairman and Managing Director said: "We are pleased to welcome on board all new investors, who strongly believe in the growth and potential of the company. All of us at Arman are very excited by the opportunity created by this investment, which will not only help us fuel the company's growth objectives but also accelerate our strategic priorities. The mix of Tier I & II equity capital will be used to fund our targeted growth plans of approximately INR 2500 crores with a healthy capital adequacy and debt-equity ratio by leveraging our presence in the MFI, MSME, TwoWheeler, and other loan segments which will enable us to achieve a sustained growth momentum in the coming few quarters.

These investments also reassures the faith that the market has in our company to deliver outlined strategy and achieve steady growth over the long term. Lastly, we would also like to extend our gratitude to all our existing stakeholders for their continued support and assure them of achieving robust operational and financial performance going forward."

Source : Equity Bulls

Keywords

ArmanFinancialServices NBFC FundRaising Securities PreferentialIssue CCDs OCRPS