Centrum Capital To Consider Raising Rs 1,000 Crore Via Issue Of NCDs

Centrum Capital, on Thursday, said its board of directors will consider raising Rs 1,000 crore through issue of non-convertible debentures at a meeting scheduled to be held on Friday, May 19, 2023.

In a filing with the stock exchanges, the company said, “the Board of Directors of the Company is scheduled to be held on Friday, May 19, 2023, inter-alia, to: consider and approve the Audited Financial Results (Standalone and Consolidated) of the Company, for the Financial Year ended March 31, 2023;  and approve raising of funds up to Rs 1,000 crore by way of issue of Non-Convertible Debentures; and approve raising of funds through issue of securities either by way of rights issue or by way of a private placement (including but not limited through a qualified institutional placement) in accordance with the provisions of the applicable law.

The outcome of the board meeting will be communicated to the stock exchanges after conclusion of the board meeting on May 19, 2023.

Last year, Centrum Housing Finance, an arm of the diversified Centrum Group, has paid Rs 112 crore for the Rs 300-crore-home loan portfolio of Chennai-based National Trust Housing Finance. Centrum Housing has entered into a binding agreement to acquire the housing finance business of National Trust Housing Finance, the Centrum group said in a statement, without disclosing the value of the transaction.

In 2020, Wall Street brokerage Morgan Stanley paid Rs 190 crore for a 20 per cent stake in Centrum Housing Finance.

Centrum Housing Finance, the affordable housing finance arm of the Centrum Group, also runs Unity Small Finance Bank.

National Trust Housing Finance is into affordable housing finance since the mid-1990s and is present in 17 cities across four southern states. It has a loan book of over Rs 300 crore and around 150 employees and Centrum will acquire the housing finance business, including the loan portfolio, branches and employees.

(With inputs from agencies)