Prachay Capital Limited is launching its public issue of secured Non-Convertible Debentures (NCDs) that offers interest rates of up to 12.75% per annum. The issue opens on June 5, 2026 and closes on June 18, 2026. With bank fixed deposit rates still moderate, many income-focused investors are exploring high-yield debt instruments such as NCDs. Should investors consider the Prachay Capital NCD June 2026 issue? In this review, we analyze the company profile, NCD features, interest rates, credit ratings, financial performance, risks and other important factors. Information in this article is based on the prospectus and issue documents.
About Prachay Capital Limited
Prachay Capital Limited was incorporated in 2017 and is an RBI-registered Non-Banking Financial Company (NBFC) that does not accept public deposits. The company primarily provides structured financing solutions to real estate developers, especially in the mid-sized and large developer segment.
The company operates mainly from Pune and plans to expand into other cities such as Hyderabad and Bhubaneswar. Prachay Capital is part of the Prachay Group, which also operates in investment banking and advisory services. According to the prospectus, the company has been registered with RBI as a non-deposit-taking NBFC.
Prachay Capital NCD June 2026 – Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 5, 2026 |
| Issue Closes | June 18, 2026 |
| Type of Instrument | Secured Redeemable Non-Convertible Debentures |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 per NCD |
| Base Issue Size | ₹50 Crores |
| Green Shoe Option | ₹50 Crores |
| Total Issue Size | ₹100 Crores |
| Listing | BSE |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Market Lot | 1 NCD |
| Allotment Basis | First Come First Serve |
| Registrar | KFin Technologies Ltd |
| Debenture Trustee | Catalyst Trusteeship Ltd |
| Lead Manager | SKI Capital Services Ltd |
Interest Rates Offered Under Prachay Capital NCD
The company is offering three series of secured NCDs with monthly interest payment options.
| Series | Tenor | Coupon Rate (p.a.) | Effective Yield (p.a.) |
|---|---|---|---|
| Series I | 36 Months | 12.25% | 12.96% |
| Series II | 48 Months | 12.50% | 13.24% |
| Series III | 60 Months | 12.75% | 13.52% |
Investors should note that higher yields generally come with higher credit risk compared to highly rated debt instruments.
Credit Rating of the NCD Issue
The proposed NCD issue has been rated:
| Rating Agency | Rating | Outlook |
|---|---|---|
| Infomerics Valuation and Rating Ltd | IVR BBB | Stable |
A BBB rating indicates a moderate degree of safety regarding timely servicing of financial obligations and carries moderate credit risk. It is lower than AAA, AA or A category debt instruments.
Credit Rating Trend in the Last Few Years
The company became a public limited company only recently and this is among its public NCD issuances. Based on available issue documents, the current NCD issue carries an IVR BBB/Stable rating from Infomerics. Investors may monitor future rating movements and quarterly financial disclosures to assess changes in credit quality.
Objects of the Issue
The company proposes to utilize the net proceeds from the issue for the following purposes:
| Purpose | Amount (₹ Crores) |
|---|---|
| Onward Lending Activities | 71.58 |
| General Corporate Purposes | 23.86 |
| Total | 95.43 |
A major portion of the funds will be used for lending activities, which is consistent with the company’s NBFC business model.
Company Financials
The financial performance of Prachay Capital over the last three years is shown below:
| Particulars (₹ Crores) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Total Assets | 233.93 | 313.20 | 371.60 |
| Total Income | 36.74 | 42.53 | 58.63 |
| Profit After Tax | 10.32 | 11.02 | 12.53 |
The company has shown consistent growth in assets, revenue and profitability over the last three financial years. However, investors should remember that financial performance alone does not eliminate credit risk.
Why Investors May Consider This NCD Issue?
- Attractive coupon rates of up to 12.75% per annum.
- Secured NCDs backed by receivables and security cover as mentioned in the prospectus.
- Monthly interest payment option suitable for regular income seekers.
- Consistent growth in assets and profits over the last three years.
- Proposed listing on BSE can provide liquidity, though liquidity on exchanges is not guaranteed.
Risks and Factors Investors Should Consider
- The NCDs are rated BBB, which indicates moderate credit risk and is significantly lower than AAA-rated instruments.
- The company operates largely in real estate-focused lending, making it exposed to sector-specific risks.
- Liquidity on stock exchanges after listing may be limited.
- NBFCs are exposed to borrower defaults and economic slowdowns.
- Higher interest rates offered by issuers generally reflect higher risk compared to bank fixed deposits and highly rated bonds.
How to Apply for Prachay Capital NCD?
Investors can apply through:
- Net banking ASBA facility offered by eligible banks.
- Online broker platforms supporting public NCD issues.
- BSE Direct platform.
- Investment platforms such as GoldenPi and IndiaBonds, subject to platform availability.
Investors need a valid PAN, Demat account and bank account linked to ASBA or UPI facilities.
Should You Invest in Prachay Capital NCD June 2026?
Prachay Capital NCDs offer attractive yields ranging between 12.25% and 12.75%, which are significantly higher than many traditional fixed-income products. The company has shown growth in assets, income and profitability over the last few years.
However, the issue carries a BBB rating, which indicates moderate credit risk. Investors who are evaluating NCDs should carefully assess the risk-reward balance, understand the issuer’s business model and review the prospectus before taking any investment decision. Conservative investors who prioritize capital safety may prefer higher-rated debt instruments, whereas investors comfortable with moderate credit risk may evaluate this issue as part of a diversified fixed-income portfolio.
Frequently Asked Questions (FAQs)
1. What is the opening date of Prachay Capital NCD June 2026?
The issue opens on June 5, 2026.
2. What is the closing date of this NCD issue?
The issue closes on June 18, 2026.
3. What is the maximum interest rate offered?
The highest coupon rate offered is 12.75% per annum.
4. Are these NCDs secured?
Yes, these are secured redeemable non-convertible debentures.
5. What is the minimum investment amount?
Investors need to invest at least ₹10,000 (10 NCDs).
6. What is the credit rating assigned to the issue?
The NCDs have been rated IVR BBB/Stable by Infomerics Valuation and Rating Ltd.
7. Where will these NCDs be listed?
The NCDs are proposed to be listed on BSE.
