Raama Finance plans ₹100 cr NCD issue, borrowing limit raised to ₹200 cr
The nano-cap NBFC, boosting scale after a revenue surge, seeks to raise debt exceeding 70% of its market cap. Shareholders vote via postal ballot.
— 1 earlier story on Raama Finance Ltd. →What's new
- Board approved ₹100 cr NCD private placement, subject to shareholder postal ballot
- Total borrowing limit enhanced to ₹200 cr; charges on assets authorized
Why this matters
For a company with a market cap of ₹139 cr and a debt/equity of just 0.06, a ₹100 cr debt raise would transform its balance sheet. After revenue jumped from ₹37.63 lakhs to ₹12.06 cr in FY26, RLFL is betting it can deploy this capital into lending. The risk: debt multiplies both returns and losses.
What we're watching
- Shareholder approval via special resolution in postal ballot
- Coupon rate and placement timeline of the NCDs
- Growth in loan book against the expanded borrowing capacity
The full read
Raama Finance, a nano-cap NBFC with a market cap of just ₹139 cr and a trailing P/E of 50.5, is asking shareholders to approve a ₹100 cr NCD private placement. That is over 70% of its current market value and roughly eight times its ₹12.06 cr annual revenue. The board also raised the total borrowing limit to ₹200 cr — a big step up from the current debt of ₹68 lakhs (debt/equity 0.06). The company's revenue exploded from ₹37.63 lakhs in FY25 to ₹12.06 cr in FY26. Now management wants to fund that growth with debt. Shareholders vote by postal ballot. If approved, RLFL's balance sheet will be transformed. The bet: that the revenue trajectory continues and the NCD coupon is low enough to generate healthy spreads. The risk: that debt multiplies the downside just as fast.
Questions answered
- How does the proposed ₹100 cr NCD compare to Raama Finance's size?
- At ₹139 cr market cap, the issue equals over 70% of the company's valuation. It is also about eight times the ₹12.06 cr revenue reported for FY26.
- What is the company's current debt level?
- Trailing debt/equity is 0.06, meaning very little debt. After the raise, debt would balloon to ₹100 cr, dramatically increasing financial leverage.
- Why does the board need shareholder approval?
- The NCD issuance requires a special resolution because the amount exceeds routine borrowing limits and substantially alters the capital structure.
- What will the funds be used for?
- The board plans to deploy the proceeds into lending operations, aiming to expand the company's interest-earning asset base.
Raama Finance Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on RLFL →- 9 Jul 2026 · 6:56 PM IST Raama Finance plans ₹100 cr NCD issue, borrowing limit raised to ₹200 cr
- 41d ago Raama Finance went from ₹37 lakh revenue to ₹12 crore in a year.