Gurgaon: LegalPay, India’s first and largest player in the legal financing industry, has announced the successful closure of its Rs 12 crore Interim Financing Bonds.
This innovative investment instrument in the fixed income category, which was launched earlier this year in January, boasts a remarkable coupon rate of 14%, compounding annually.
“We are thrilled to celebrate the success of our Interim Financing Bonds and our contribution to the economic revitalization of companies like Lavasa Corporation,” said Mr. Kundan Shahi, Founder & CEO at LegalPay. “We are proud to have successfully closed our Interim Financing Bonds, but our true pride lies in the impact we create in the legal & insolvency ecosystem and the value we create for our investors and our clients. We are here to alleviate financial burdens, mitigate risks, and ensure that justice prevails.”
The bond has set new standards in the financial industry by realizing its opportunity in an impressive timeframe of just eight months despite having an original tenure of 36 months with a callable feature.
LegalPay’s Interim Financing Bonds represent a paradigm shift in the world of investments, offering a unique opportunity to investors and companies alike. The funds raised through this visionary initiative have been strategically employed to support Lavasa Corporation, a prominent player in the infrastructure sector.
The National Company Law Tribunal (NCLT) approved the resolution plan of Darwin Platform Infrastructure Limited (DPIL), which offered Rs 1,814 crore to the creditors and homebuyers of Lavasa. Raj Infrastructure Development India, one of Lavasa’s creditors, filed a bankruptcy petition against the company after it failed to meet its payment obligations. The petition was approved in August 2018.
Notably, LegalPay’s unwavering commitment to a rigorous underwriting process played a pivotal role in mitigating the perceived risks associated with this opportunity. In the face of skepticism, LegalPay’s cutting-edge technology and AI-driven analysis, combined with its diligence and expertise, prevailed, resulting in the rapid realization of this investment. This remarkable success in just 8 months stands as a testament to LegalPay’s strong underwriting, powered by advanced technology, and its dedication to delivering outstanding results to its investors.
However, LegalPay’s impact extends far beyond this successful bond closure. LegalPay is dedicated to providing critical capital to companies undergoing insolvency, breathing new life into struggling businesses, and fuelling economic growth. LegalPay’s innovative approach is revolutionizing the way companies navigate litigation challenges, alleviating their financial burdens and providing a lifeline for those seeking funding for their legal battles.
Currently managing claims worth INR 2700 Crores, LegalPay aims to manage INR 5000 Crores with its proprietary tech and AI by the end of FY2025. This demonstrates the company’s dedication to substantially impacting India’s legal and financial landscape. With groundbreaking instruments like Interim Financing Bonds and a commitment to supporting companies in insolvency and financing legal claims, LegalPay is making a substantial impact on the Indian legal and financial landscape while creating quintessential value for both businesses and investors.