Prachay Capital Limited IPO

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

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

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The rating agency for this Bond is CRISIL.

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

Pros

Cons

Prachay Capital Limited claims to offer fast and efficient financial solutions, supported by a team that prioritises the time-sensitive requirements of borrowers. Once documentation is complete, the company ensures quick loan approvals and disbursements, which it identifies as a core operational strength.

The company claims to design customised financial structures based on client-specific needs. Its flexible loan offerings have reportedly supported growth in assets under management (AUM) from Rs 225.68 crore in FY23 to Rs 335.20 crore in FY25.

Prachay Capital claims to follow a long-term business model that aims to deliver consistent value to borrowers, investors, and employees. It provides higher fixed returns to investors compared to traditional instruments and offers flexible credit options to mid-sized businesses.

The company claims that its wholesale lending model is scalable and supported by aligned systems and processes. Its AUM grew at a compound annual growth rate (CAGR) of 21.87 percent between FY23 and FY25, reaching Rs 362.95 crore by September 30, 2025, with corresponding profit growth and a reported capital to risk-weighted assets ratio (CRAR) of 30.23 percent during the same period.

Prachay Capital Limited

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