Arman Financial Services Ltd announces fund raising through issuance of non-convertible debentures (NCDs) to support its growth strategy.
Arman Financial Services Announces Fund Raising via NCD Issuance
Ahmedabad, June 11, 2025 – Arman Financial Services Ltd (BSE: 531179) has initiated a fund-raising process through the issue of non-convertible debentures (NCDs), a strategic step towards bolstering its capital structure and facilitating continued business growth. This new move follows in line with the company’s objective of diversifying sources of funds in addition to exercise of financial prudence.
The plan for raising the funds was approved by the board of directors on June 11, 2025, according to a regulatory filing to the Bombay Stock Exchange. The company has not announced the actual quantum, tenure, or coupon rate on the proposed debentures, but highlighted that the issue will be in line with relevant SEBI rules and statutory approvals.
Strengthening the Financial Backbone
The issuance of NCDs reflects Arman Financial’s ongoing effort to optimize its debt profile. NCDs are fixed-income instruments that allow companies to raise capital without diluting equity. Since these instruments are not convertible into shares, they help maintain shareholder value while providing long-term financing at predictable interest costs.
Arman Financial has been steadily expanding its footprint in the microfinance and small business lending segments. With increased credit demand from underserved regions and sectors, the new funds will likely be channeled into loan disbursements, digital lending initiatives, and operational scalability.
Regulatory Compliance and Board Approval
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According to the filing made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the board authorized the management to proceed with the necessary procedural formalities, including appointment of intermediaries and filing of offer documents.
The detailed terms of the NCDs — including the face value, issue size, coupon rate, tenure, security, and allotment method — will be determined in due course, subject to market conditions and investor response.
The official disclosure can be accessed on BSE India along with the accompanying PDF document submitted during the announcement.
Market Response and Outlook
While the markets have not yet reacted significantly to the announcement, financial analysts believe that this move reinforces Arman Financial’s credibility as a disciplined borrower and issuer. The choice of NCDs — particularly in an interest-sensitive environment — highlights the company’s balanced approach to cost-effective funding.
Arman’s previous financial disclosures have shown consistent growth in revenue, disbursement volumes, and a healthy asset quality. The NCD issuance is expected to further enhance liquidity buffers and fund future strategic initiatives, especially in tier 2 and tier 3 markets where demand for financial services is robust.
About Arman Financial Services Ltd
Incorporated in 1992, Arman Financial Services Ltd is an NBFC with main businesses in microfinance, MSME lending, and two-wheeler finance. Having its head office in Ahmedabad, the company operates under a dual-lending structure through its subsidiaries to access financially excluded segments.
In the last decade, Arman has concentrated on using technology and operations in the field to achieve financial inclusion in rural and semi-urban India. Its niche positioning in micro-lending makes it a key facilitator of grassroots economic empowerment.
