Oxyzo financial bonds: Price, ISIN , Yield (YTM), rating & key risks

Quick Overview

Oxyzo Financial Services Limited is a systemically important non-deposit-taking Non-Banking Financial Company (NBFC-ND-SI) registered with the Reserve Bank of India (RBI). Originally founded in 2016 as the specialized financing arm of B2B commerce unicorn OfBusiness (OFB Tech), Oxyzo has scaled into an independent, profitable financial technology enterprise. Headquartered in Gurugram, Haryana, the institution delivers customized cash flow and working capital solutions to Small and Medium Enterprises (SMEs), mid-market corporates, and sub-contractors operating across manufacturing, infrastructure, pharmaceuticals, and industrial supply chains.

To diversify its institutional borrowing mix, fund onward credit disbursements, and maintain balanced asset-liability matching (ALM), the company regularly accesses the corporate bond market by issuing Non-Convertible Debentures (NCDs). This analytical guide provides an in-depth breakdown of oxyzo financial bonds, reviewing featured debt tranches: ISIN INE04VS07396 (9.75% Quarterly Payout, Maturing March 2028) and ISIN INE04VS07370 (9.75% Annual Payout, Maturing March 2027). Carrying a validated ICRA A+ / Stable and CRISIL A+ / Stable credit rating profile, these Oxyzo Financial Services NCD issues offer fixed-income investors a combination of scheduled quarterly cash flows, capital adequacy of over 34%, and senior secured asset backing.

What Is Oxyzo Financial Services Limited?

Incorporated to solve structural credit gaps for manufacturing and contracting businesses, Oxyzo Financial Services Limited operates as a differentiated, tech-driven B2B lending platform. Unlike conventional collateral-heavy banking frameworks, Oxyzo evaluates cash flows and material movement across manufacturing value chains using proprietary underwriting algorithms.

The institution’s credit operations are organized across four primary product verticals:

• Raw Material & Purchase Finance: Financing procurement for essential manufacturing inputs (steel, polymers, chemicals, agri-commodities, and industrial electricals).

• Invoice Discounting & Receivables Financing: Unlocking liquidity by discounting verified enterprise trade invoices for vendors supplying tier-1 corporate anchors.

• Contract & Work-Order Financing: Providing pre-shipment and execution working capital against confirmed supply orders and infrastructure sub-contracts.

• Secured SME Term Loans & Machinery Finance: Extending medium-term loans for plant expansion, industrial equipment, and technology upgrades.

Backed by institutional equity investors—including Matrix Partners India, Tiger Global, Norwest Venture Partners, Alpha Wave Global, and Creation Investments—Oxyzo operates with an equity net worth exceeding ₹3,100 crore and total balance sheet assets past ₹9,200 crore.

Oxyzo Financial Bonds: Key Technical Specifications

Fixed-income investors examining corporate debt opportunities should review the structural terms across active debenture series. The table below outlines the core parameters of e oxyzo financial bonds:

*Note: Secondary market metrics specifically clean prices, accrued interest, and dynamic Yield to Maturity (YTM) adjust continuously based on benchmark repo rates and exchange trading liquidity.

Deep-Dive Analysis: Key NCD Tranches (ISIN Showcase)

1. ISIN INE04VS07396 (9.75% Quarterly Payout, Maturing March 2028)

This debenture series features a nominal face value of ₹1,00,000 per unit and matures on March 26, 2028. Carrying a contractual 9.75% annual coupon rate distributed on a quarterly schedule, it provides for scheduled interest payments. . For an investor holding 1 unit (₹1,00,000 face value), the bond provides for approximately ₹2,437.50 pre-tax every quarter across four scheduled annual payment dates. This medium-term structure may be considered in the context of an investor's individual investment horizon and liquidity requirements.

2. ISIN INE04VS07370 (9.75% Annual Payout, Maturing March 2027)

Structured with a nominal face value of ₹1,00,000 per unit, this shorter-tenure tranche features a contractual 9.75% annual coupon paid once per year. Maturing on March 19, 2027, this tranche provides investors with a shorter holding period, reducing interest rate duration risk while maintaining an A+ credit profile.

Secondary Traded Price vs Yield to Maturity (YTM)

Understanding how secondary market trade quotes impact realized investor yields is essential when evaluating listed corporate NCDs:

● Contractual Coupon Baseline: The fixed interest rate agreed at issuance. A 9.75% coupon on a ₹1,00,000 face value bond provides for ₹9,750 in gross annual interest, subject to the applicable terms.

● Secondary Market Price Movements: Listed debentures trade on exchange platforms at prices influenced by prevailing interest rate cycles and market liquidity. When high-coupon A+ rated units trade at or slightly below par (e.g., ~₹99.50 to ₹100.20 per ₹100 face value), the effective yield may be close to or above the stated coupon, depending on the purchase price and remaining cash flows.

● Yield to Maturity Dynamics: Buying at a discount to face value may result in a higher effective secondary market Yield to Maturity (YTM), with the indicated YTM in the range of ~9.75% to 10.10% per annum.

At an indicative secondary YTM of ~9.85%+, Oxyzo Financial debentures have a higher indicated yield than the referenced tenure-matched bank fixed deposits (which average 6.50%–6.70%). The difference in yields should be considered alongside the credit, liquidity, interest-rate and other risks associated with corporate debt.

Credit Rating Safety Validation: What A+ Means

The long-term debt issuances and bank facilities of Oxyzo Financial Services Limited carry assigned credit ratings of ICRA A+ / Stable and CRISIL A+ / Stable.

[AAA Tier: Highest Safety] -> [AA Tier: High Safety] -> [ICRA / CRISIL A+ (Adequate Safety Grade)] -> [BBB Floor]

Instruments rated inside the A category are defined by credit rating agencies as carrying an adequate degree of safety regarding the timely servicing of financial obligations, with low credit risk under standard economic conditions. The plus (+) modifier places the issuer in the upper tier of the "A" rating bracket. The "Stable" outlook reflects rating agency confidence that the lender will maintain strong capital adequacy, healthy profitability, and sound asset quality across manufacturing credit cycles.

Senior Secured Collateral Safeguards

To protect debenture holders, these bonds are structured as Senior Secured NCDs. The issues are secured by a specific first pari-passu charge over designated performing loan receivables and book debts of the company. Monitored by the appointed debenture trustee (Catalyst Trusteeship Limited), the lender maintains a contractually required security cover ratio (typically 1.10x to 1.25x). In an adverse credit event, senior secured bondholders hold priority repayment claims ahead of unsecured creditors and equity shareholders.

Financial Snapshot & Balance Sheet Strength

Evaluating the financial profile of a B2B financing NBFC requires examining its balance sheet capitalization, leverage, and asset quality metrics:

● Capitalization Buffers: Supported by l private equity rounds and retained earnings, the company maintains a Capital Adequacy Ratio (CRAR) of ~34.46%, above the applicable RBI's statutory 15% minimum mandate.

● Balance Sheet Gearing: Debt-to-equity leverage stands at ~2.00x, compared with typical NBFC industry gearing levels of approximately 4.0x–5.0x.

● Asset Quality Metrics: Gross Non-Performing Assets (GNPA) stand at ~1.16%, with Net NPA at ~0.53%, alongside cash-flow tracking and supply chain integration.

● Net Earnings: The lender has reported positive net profitability, with annualized Profit After Tax (PAT) exceeding ₹320+ crore alongside reported net interest margins (NIM).

Key Risks of Investing in Oxyzo Financial NCDs

While a 9.75%–10.10% secondary YTM offers the indicated yield profile, fixed-income investors should consider several structural risk factors:

• SME & Manufacturing Borrower Sensitivity: A significant l portion of the loan book caters to SMEs, sub-contractors, and mid-market industrial units. Broader economic slowdowns, raw material inflation, or payment delays from large corporate buyers could impact borrower cash flows.

• Unsecured Working Capital Exposure: While secured loans form a major portion, short-term purchase finance and invoice lines may carry limited hard asset collateral beyond corporate guarantees and receivables.

• Interest Rate Fluctuations: As macro interest rates shift, secondary market prices of fixed-coupon bonds may fluctuate. Investors who exit prior to maturity may face capital gains or losses depending on prevailing yields.

• Secondary Market Trading Liquidity: While listed on the BSE and NSE debt platforms , daily trading volumes on specific private placement series can vary. Investors considering an early exit should account for potential bid-ask spread variations.

Taxation Framework on Indian Corporate NCDs

Tax treatment for coupon income and capital gains earned from listed corporate debentures follows the provisions of the Indian Income Tax Act:

1. Taxation on Periodic Interest Inflows: Quarterly and annual coupon distributions are classified under Income from Other Sources and taxed at the investor's applicable individual income tax slab rate.

2. Tax Deducted at Source (TDS): Pursuant to Section 193 of the Income Tax Act, a mandatory 10% TDS deduction applies at the time of interest payment on listed corporate debentures. Investors can claim this deduction as a tax credit when filing their annual Income Tax Return (ITR).

3. Capital Gains on Secondary Market Sales: If debentures are sold on an exchange platform prior to maturity:

○ Holding Period Under 12 Months: Treated as Short-Term Capital Gains (STCG) and taxed at standard individual income tax slab rates.

○ Holding Period Over 12 Months: Treated as Long-Term Capital Gains (LTCG) and taxed at a flat rate of 12.5% without indexation benefits under current tax regulations.

Investor Evaluation Checklist Before Allocation

Before evaluating an allocation in Oxyzo Financial Services debentures on a digital bond platform, investors should verify these key transaction parameters:

• Verify the Specific ISIN: Confirm whether the order corresponds to INE04VS07396 (9.75% Quarterly / March 2028) or INE04VS07370 (9.75% Annual / March 2027) to align with the desired cash-flow requirements.

• Review Clean vs. Dirty Price Quotes: Check whether the secondary listing price includes accrued interest accumulated since the last coupon payout date.

• Assess Payout Frequency Fit: Confirm whether quarterly cash flows or annual distributions better suit the desired liquidity planning.

• Maintain Portfolio Diversification: Balance corporate debt investments across multiple financial issuers, sectors, and credit rating tiers to manage single-entity risk.

Frequently Asked Questions (FAQs)

What is the specific instrument structure of Oxyzo Financial Services bonds?

Oxyzo Financial Services bonds are senior secured, rated, and exchange-listed Non-Convertible Debentures (NCDs) offering contractual coupon rates around 9.75% per annum with quarterly or annual payout schedules.

What is the credit rating of Oxyzo Financial bonds?

Oxyzo Financial Services holds a credit rating of ICRA A+ / Stable and CRISIL A+ / Stable, reflecting an adequate-to-high degree of safety regarding the timely servicing of financial obligations.

What is the secondary market yield (YTM) on Oxyzo Financial NCDs?

Depending on prevailing market interest rates, trading prices, and maturity schedules, secondary market yields to maturity (YTM) typically range between 9.60% and 10.15% per annum.

How is interest paid on Oxyzo Financial bond tranches?

Interest payout frequency depends on the selected series: ISIN INE04VS07396 pays on a quarterly schedule, while ISIN INE04VS07370 distributes coupon payments annually.

Where can investors buy listed Oxyzo Financial bonds online?

Fixed-income investors can review clean and dirty prices, analyze cash flow term sheets, and trade listed corporate bonds directly on SEBI-registered Online Bond Platform Providers (OBPPs) such as BondScanner.

Published By

BondScanner, a SEBI-registered Online Bond Platform Provider (OBPP). Links to BondScanner's bond listing page, Android app, and iOS app referenced in this article are for informational purposes only.

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Disclaimer

This blog is intended solely for educational and informational purposes. The instruments, issuer categories, yield ranges and examples mentioned herein are illustrative and should not be construed as investment advice or recommendations.

BondScanner is a SEBI-registered OBPP and does not provide personalised investment advice. Nothing in this article is a solicitation to buy or sell any security. Investments in debt securities are subject to risks, including delay and/or default in payment. Investors must read all offer-related documents carefully before investing.