AAVAS Financiers gains as board approves Rs 200 crore NCD issuance via private placement

AAVAS Financiers added 1.17% to Rs 1,845.70 after its board's executive committee has approved raising up to Rs 200 crore through a private placement of non-convertible debentures (NCDs).

The housing finance company announced plans to issue up to 20,000 senior, secured, rated, listed, and redeemable Non-Convertible Debentures (NCDs), each with a face value of Rs 100,000.

The company added that the debentures will have tenure of 60 months and are set to be listed on the Wholesale Debt Market (WDM) segment of the BSE.

Interest on the NCDs will be paid quarterly, while the principal will be repaid in 20 equal quarterly instalments of Rs 5,000 per debenture. The debentures will be secured by a first-ranking exclusive charge over the companys identified loan receivables, ensuring coverage of at least 110% of the principal and interest payable.

The issuance follows shareholder approval granted at the company's 14th Annual General Meeting in August 2024.

AAVAS Financiers is engaged in long-term financing activity in the domestic markets to provide housing finance.

The companys standalone net profit jumped 7.75% to Rs 153.68 crore in Q4 FY25, compared with Rs 142.62 crore posted in Q4 FY24. Total revenue from operations soared 16.51% to Rs 636.21 crore in Q4 FY25 as against Rs 546.02 crore posted in Q4 FY24.

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