Prachay Capital Limited IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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AAA, AA+, AA, AA-, A+, A, A-

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BBB+, BBB, BBB-, BB+, BB

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BB-, B+, B, B-, C, D

The rating agency for this Bond is IVR.

About

Prachay Capital Limited is a Reserve Bank of India-registered non-deposit-taking non-banking financial company – investment and credit company (NBFC-ICC) under the Base Layer category. The company provides credit and investment solutions to mid-sized businesses that require financing for growth, expansion, or working capital. Through its subsidiaries, Prachay Securities Private Limited (PSPL) and Prachay Investment Managers Private Limited (PIMPL), it operates across private credit, corporate bonds, and alternative investment funds. PSPL, a SEBI-registered debt segment broker, manages “Bondsmart,” an online platform for trading privately placed and listed fixed-income securities. PIMPL serves as the investment manager for a SEBI-registered Category II alternative investment fund focused on structured debt. The company operates with a dual-sided model, sourcing funds through high-yield fixed-income instruments and deploying them as private credit and debt securities solutions for mid-sized corporates. Use of Proceeds: The proceeds from the current issue of NCDs are proposed to be used for the following purposes: Onward lending, investments in current and future AIF schemes of the company’s alternate asset management business, and repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company — at least 75 percent of the amount proposed to be financed from the net proceeds. General corporate purposes — a maximum of up to 25 percent.;

Pros and Cons

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The company has demonstrated strong growth in its lending business over the last few years. Its assets under management (AUM) increased from Rs 285.70 crore in FY24 to Rs 444.85 crore in FY26, reflecting a CAGR of 24.78%.

Prachay Capital claims to offer customised structured finance solutions designed around the specific requirements of borrowers. This flexible approach has helped the company expand its lending portfolio and cater to medium and large-sized businesses requiring tailored financing arrangements.

The company has maintained a healthy capital position over the last three financial years. Its net worth increased from Rs 70.44 crore in FY24 to Rs 82.68 crore in FY25 and Rs 114.83 crore in FY26, while its Capital to Risk-Weighted Assets Ratio (CRAR) remained stable at 24.87%, 24.82%, and 25.64% during the same period. This consistent growth in net worth and strong capital adequacy provides the company with a financial cushion to support future business expansion.

The company is led by its promoter and managing director, who is a qualified chartered accountant with over 16 years of experience in the banking and finance industry. The senior management team also claims to possess significant experience across various financial services functions.

Prachay Capital primarily operates in the wholesale (B2B) corporate lending segment, which it claims is highly scalable. The company believes its systems, processes, and operating model are designed to support expansion across products and geographies.

The company claims to provide quick loan approvals and disbursements once the required documentation is received. This focus on turnaround time enables it to serve businesses seeking timely access to capital.

On a consolidated basis, the company reported a Return on Equity (RoE) of 6.85% and a Return on Assets (RoA) of 1.65% as of March 31, 2026. These metrics indicate its ability to generate returns while continuing to grow its loan book.

Prachay Capital Limited

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