Prachay Capital Limited has come up with its February 2026 public issue of secured Non-Convertible Debentures (NCDs). The company is offering attractive coupon rates to retail investors at a time when bank FD rates are stabilising. In this article, let us deep dive into the issue details, interest rates, company fundamentals, credit rating trends and finally analyse whether investors should subscribe or avoid this NCD issue.
About Prachay Capital Limited
Prachay Capital Limited is a Pune-based Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. The company was incorporated in 2017 and converted into a public limited company in 2024.
The company primarily focuses on lending against property (LAP), structured credit, capital market-linked financing and investments in AIF units and debentures. It operates as a non-deposit taking NBFC and is classified under the RBI’s Scale Based Regulation framework.
As an NBFC, its business model depends on maintaining asset quality, managing credit risk and ensuring adequate capital buffers.
Prachay Capital NCD Feb-2026 – Issue Details
Below are the key details of this NCD issue:
| Particulars | Details |
|---|---|
| Issue Type | Secured, Redeemable, Non-Convertible Debentures |
| Face Value | ₹1,000 per NCD |
| Base Issue Size | ₹5,000 Lakhs |
| Green Shoe Option | ₹5,000 Lakhs |
| Total Issue Size | Up to ₹10,000 Lakhs |
| Issue Opening Date | February 26, 2026 |
| Issue Closing Date | March 12, 2026 |
| Listing | Proposed to be listed on BSE |
| Security | First ranking pari-passu charge on receivables and other assets |
| Minimum Application | 10 NCDs (₹10,000) |
The issue is not underwritten. Investors can apply through ASBA or UPI mechanism.
Interest Rates Offered
The company is offering multiple series with different tenors and payout options.
| Series | Tenor | Coupon Type | Interest Rate | Effective Yield |
|---|---|---|---|---|
| Series I | 36 Months | Monthly | 12.5% | 13.24% |
| Series II | 48 Months | Monthly | 12.75% | 13.52% |
| Series III | 60 Months | Monthly | 13.0% | 13.8% |
Credit Rating and Outlook
The NCDs have been rated CRISIL BBB- with Stable outlook.
This rating indicates moderate degree of safety regarding timely servicing of financial obligations and carries moderate credit risk. BBB- is just one notch above the non-investment grade category.
Credit Rating Trend (Last 3-5 Years)
Since its inception, the company has largely maintained investment grade ratings in the BBB category. There has been no drastic downgrade into junk category so far. However, the rating remains in the lower investment grade band, which means risk levels are higher compared to AA or AAA rated NCDs.
Investors should monitor future rating movements carefully.
Objects of the Issue
The company proposes to utilise the funds raised for:
- Repayment or prepayment of existing borrowings
- Augmenting working capital requirements
- General corporate purposes
Repayment of high-cost borrowings can improve interest margins if executed efficiently.
Company Financials
Based on recent financial disclosures:
- The company has shown growth in Assets Under Management (AUM).
- Profitability has improved in recent financial years.
- Net Interest Margins remain healthy for an NBFC of this size.
- Capital adequacy ratio is maintained as per RBI norms.
However, being a mid-sized NBFC, the company is exposed to credit risk, economic slowdown risks and real estate-linked risks.
Investors should particularly evaluate:
- Gross and Net NPA levels
- Provision coverage
- Borrowing profile
- Debt-to-equity ratio
Why to Invest in Prachay Capital NCD?
- Attractive interest rates up to 13.0%.
- Secured NCDs backed by receivables and assets.
- Listed on BSE providing liquidity.
- Stable rating outlook.
- Suitable for investors seeking regular monthly income.
Why Not to Invest?
- BBB- rating is at the lower end of investment grade.
- NBFC business is sensitive to economic cycles.
- Concentration risk in lending segments.
- Liquidity on exchanges may be limited post listing.
- Credit risk higher than AAA or AA rated NCDs.
Conservative investors should be cautious.
How to Apply for Prachay Capital NCD?
Investors can apply through:
- Net banking ASBA facility
- Broker platforms
- UPI mechanism for retail investors
Minimum investment starts at ₹10,000. Ensure your demat account is active before applying.
Should You Invest or Avoid?
Prachay Capital NCD Feb-2026 offers attractive yields up to 13%. However, the CRISIL BBB- rating places it in the high risk category.
Risk-averse investors who prefer capital safety may consider higher rated NCDs or bank FDs.
Very High risk investors looking for higher income allocation can consider investing a small portion of their fixed income portfolio, but should avoid overexposure.
Overall View: Suitable only for Very high risk investors. Others can avoid.
Frequently Asked Questions (FAQs)
1. Is Prachay Capital NCD safe?
It is rated BBB- which indicates moderate safety but not high safety.
2. What is the maximum interest rate offered?
Up to around 10.50% depending on the series selected.
3. Is the NCD secured?
Yes, these are secured NCDs backed by receivables and other assets.
4. Can I sell the NCD before maturity?
Yes, after listing on BSE, subject to liquidity availability.
5. What is the minimum investment amount?
₹10,000 (10 NCDs).
6. Is TDS applicable on NCD interest?
No TDS if held in demat form, but interest is taxable as per your slab.
7. Who should invest in this NCD?
Investors seeking higher fixed income returns and willing to take moderate credit risk.
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