Orange Retail Finance raises $5.3M in first listed debt sale, opening $21M NCD programme
What's the deal? Orange Retail Finance IndiaDealroom has a profile for this one. Try Dealroom →, an RBI-registered non-banking financial company (NBFC), has completed its first listed non-convertible debenture (NCD) issuance of US$6.79M, supported by UMI Capital. The sale is the first tranche of a US$27.2M listed NCD programme for FY27 and part of a broader US$40.7M debt fundraising plan for the year.
What's the endgame? The company is shifting from a legacy two-wheeler lending portfolio to a secured retail finance model led by gold loans and MSME loans against property. It targets US$74.7M in assets under management (AUM) this fiscal year, and aims to scale AUM from US$55.7M to US$407.4M by FY2031.
Why now? The issuance marks Orange's entry into the listed debt market. "This is the first of several steps to widen our funding base and lower our long-term cost of capital," said chief financial officer Saravanan Kandan.
Where it lends: Orange concentrates disbursements in rural and Tier-2 markets across Tamil Nadu, Andhra Pradesh, Karnataka, and Telangana, where many customers are first-time users of formal credit. Women make up 35% of its borrower base, a figure the company intends to double as it scales.
The state of the book: Portfolio quality has improved, with gross NPAs falling from 9.3% in March 2024 to roughly 2.1–2.8% now. Its capital adequacy ratio stands at 34%.
What could go wrong? Orange is rated ICRADealroom has a profile for this one. Try Dealroom → BBB− (Stable), near the lower end of investment grade, and its growth plan depends on executing a rapid transition into new secured products while lending to underserved, higher-risk borrowers.
The signal: The listed NCD gives Orange a structured pathway to institutional debt capital as it moves away from unsecured two-wheeler loans. "Completing our first listed NCD is an important milestone in Orange's transition to a more diversified, capital markets-linked funding base," said founder and chief executive officer Ebenezer Daniel G.
Read more: mangaloremirror.com
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