Arka Fincap Ltd, a wholly-owned subsidiary of Kirloskar Oil Engines Ltd (KOEL), has raised Rs. 105 crore through non-convertible debentures (NCDs) on a private placement basis.
The asset liability committee approved the issuance of 1,050 secured, redeemable, listed, rated NCDs of the face value of Rs.10 lakh each, for a maximum tenure of three years. The debentures are listed on BSE.
“Raising funds during the outbreak of the pandemic depicts the strength, intrinsic values, and the strong business model of the company. This capital infusion will strengthen our position and build a healthy balance sheet which would further enable us to continue with our journey of providing financial support to our valuable customers,” Amit Gupta, Head-Resources & Corporate Finance at Arka Fincap, said.
Arka, which commenced its operations in 2019, provides structured term financing solutions to corporates, real estate and loans to micro, small, and medium enterprise borrowers.