Stashfin parent AKARA Capital lists first Rs 10,000 face value NCDs on BSE

This follows a July 2024 Sebi amendment lowering the minimum face value of debt securities from Rs 1,00,000 to Rs 10,000, expanding retail investment opportunities

In a recent development in India’s fintech sector, Stashfin, a financial services platform, announced on Wednesday, September 11, that its parent company, AKARA Capital Advisors Pvt Ltd, has become the first fintech NBFC to list Non-Convertible Debentures (NCDs) with a face value of Rs 10,000 on the Bombay Stock Exchange (BSE).

This marks a significant development following a regulatory amendment by Securities and Exchange Board of India (Sebi) in July 2024, which reduced the minimum face value of debt securities from Rs 1,00,000 to Rs 10,000, broadening investment opportunities for retail investors across India.

AKARA Capital aims to raise Rs 100 crore through this bond issue over the next quarter. The first tranche, valued at Rs 6.5 crore, was fully subscribed on a retail platform, signalling robust investor demand for Stashfin’s offerings. The company’s entry into the debt market can be helpful in democratising investment opportunities, particularly for retail investors, who previously had limited access to bond markets, the company said.

Founded in 2016, Stashfin is a financial services platform in India, providing fast, affordable, and transparent financial products to millions of borrowers. Stashfin has raised over Rs 5,800 crore through multiple rounds of equity and debt funding from global investors, including Uncorrelated Ventures, Fasanara Capital, and Kravis Investment Partners.

Meanwhile, the recent regulatory amendment by Sebi is expected to significantly transform the bond market, enhancing its accessibility and appeal to retail investors. Sebi has also introduced a standardised record date of 15 days before any interest payment or redemption, ensuring greater transparency and consistency in the market. 

Commenting on the development, Tushar Agarwal, founder and CEO of Stashfin said, “This move by Sebi is a game-changer for financial markets, lowering entry barriers for retail investors and broadening participation in debt securities. As the first fintech NBFC to seize this opportunity, we view this as a pivotal moment in India’s financial evolution. The move aligns with our mission to disrupt traditional lending practices and offer more flexible, accessible financial solutions.”