₹1,630 crore in bids poured in for DMI Finance’s ₹1,455 crore NCD issue, a clear sign of investor confidence that surpassed the raised sum. The ten‑year‑tenure debentures carry an ICRA AA rating, underscoring the company’s solid credit profile.
Mutual funds, alternative investment funds, primary dealers, corporates and family offices formed the majority of participants, reflecting a broad appetite for the NBFC’s debt securities. Morgan Stanley was tapped to structure the placement, lending its expertise to align the issue with market expectations.
Shivashish Chatterjee, co‑founder and managing director, said the company is intent on keeping a diversified funding mix as it scales. He added that the proceeds would sustain lending growth while maintaining risk controls, a balance the firm has pursued since its 2008 founding.
The capital will be deployed to expand DMI’s consumption, personal and MSME loan books, and to meet short‑term funding needs. By tapping the debt capital markets, DMI aims to reduce reliance on banks and broaden its funding base.
In the broader NBFC landscape, insurers and fintech lenders are increasingly turning to NCDs to shore up liquidity amid tightening credit conditions. DMI’s move places it among peers who are leveraging debt instruments to fuel growth.
Looking ahead, DMI will monitor the utilisation of the raised capital in its upcoming quarterly report, scheduled for July 15. Analysts anticipate that the infusion will translate into higher loan disbursements and a modest lift in net interest margin.