Mangal Credit locks in ₹20 cr via NCDs at 11.75% coupon
The nano-cap NBFC taps debt markets again, raising ₹20 cr in its second NCD issuance in two months. That's 4.37% of market cap.
— 1 earlier story on Mangal Credit and Fincorp Ltd. →What's new
- Mangal Credit allotted 2,000 secured NCDs of ₹1 lakh each, raising ₹20 cr on June 23, 2026.
- The 27-month NCDs carry an 11.75% monthly coupon and are secured by receivables.
- This is a reissuance under an existing ISIN, following board approval on May 7.
Why this matters
At 4.37% of market cap, this is the company's second NCD raise in two months, cumulatively ₹30 cr. For a nano-cap NBFC, the debt inflow is material and should support near-term lending growth. The 11.75% coupon is competitive for the rating, and the secured structure keeps risk in check.
What we're watching
- Whether Mangal Credit continues tapping NCDs at this pace — ₹30 cr in two months is aggressive.
- Impact on debt/equity ratio, currently at 1.41, and whether it drifts higher.
- Loan book growth in coming quarters as a result of this liquidity injection.
The full read
Mangal Credit and Fincorp has raised ₹20 crore through the allotment of 2,000 secured non-convertible debentures of ₹1 lakh each. Its second NCD issuance in two months. The 27-month paper carries an 11.75% monthly coupon and is secured by receivables. At around 4.37% of the company's ₹458 crore market cap, this is material for a nano-cap NBFC. Together with the ₹10 crore NCD raise in May, Mangal Credit has tapped debt markets for ₹30 crore in a short span, signalling active capital management. The funds will support lending operations, and the coupon is in line with market rates for similarly rated paper. With a debt/equity ratio of 1.41, the company still has headroom. The reissuance under an existing ISIN suggests operational efficiency. The move is routine but material for a firm with ₹9 crore quarterly sales.
Questions answered
- How does this ₹20 cr NCD raise compare to the previous one in May?
- In May, Mangal Credit raised ₹10 cr through a similar NCD at the same 11.75% coupon. This June issuance doubles that amount, bringing total NCD raises in two months to ₹30 cr.
- Why is this NCD raise significant for a company of this size?
- At ₹20 cr, the raise represents about 4.37% of the company's market cap of ₹458 cr (or 4.2% of the ₹475 cr market cap per our database). For a nano-cap NBFC, that exceeds the 1% materiality threshold, making it a meaningful capital event.
- What will the funds be used for?
- The funds will support the company's lending operations, as is typical for NBFC debt raises. The NCDs are secured by receivables, so the collateral is linked to the loan book.
- Is the 11.75% coupon attractive for investors?
- Yes, for a secured 27-month instrument, 11.75% monthly coupon is in line with market rates for similarly rated NBFC paper. It offers a high yield relative to bank deposits, albeit with higher risk.
- What is the company's current debt level?
- Mangal Credit's debt/equity ratio stands at 1.41 as per trailing data. The ₹20 cr raise will increase debt but is not transformative given the existing balance sheet.
- Is this NCD issuance a new instrument?
- No, it is a reissuance under an existing ISIN, meaning the company tapped an already-approved debenture program rather than launching a new series.
Mangal Credit and Fincorp Ltd.
Latest quarter · Dec 2019
Leverage & growth
Story so far
All notes on MANCREDIT →- 23 Jun 2026 · 12:09 PM IST Mangal Credit locks in ₹20 cr via NCDs at 11.75% coupon
- 34d ago Mangal Credit raises ₹10 cr via NCDs at 11.75% coupon