Board approves NCD issue up to INR 50 crore in Series A1 and A2; committee authorised up to INR 300 crore

Outcome of Board Meeting: approval for Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures up to INR 50 Crores in Series A1 and A2 on a private placement basis.

Sat 10 Oct 2026

NCD Issue Size

up to INR 50 Crores in Series A1 and A2

Series A1

up to INR 25 Crores, tenure up to 24 months

Series A2

up to INR 25 Crores, tenure up to 30 months

What the board approved

• Issuance of Secured, Listed, Rated, Transferable, Redeemable, Non-Convertible Debentures up to INR 50 Crores (Indian Rupees Fifty Crores Only) in Series A1 and Series A2, on a private placement basis, in one or more tranches.
• The debentures are proposed to be listed on the National Stock Exchange of India Limited.

The two series

• Series A1: size of the issue up to INR 25 Crores in one or more tranches/series, tenure up to 24 months from the Deemed Date of Allotment.
• Series A2: size of the issue up to INR 25 Crores in one or more tranches/series, tenure up to 30 months from the Deemed Date of Allotment.
• Coupon/interest offered, the schedule of payment of coupon/interest and principal, and the details of redemption are as specified in the key information document. No special rights, interests or privileges are attached to the instruments.

Security for the debentures

The company shall maintain a security cover of at least 1.10x at all times during the tenure of the debentures over loan receivables, present and future, of the issuer that fulfil the eligibility criteria, with the prescribed security cover in place on or prior to the Deemed Date of Allotment.

What the board also authorised

The Board authorised the Loan & Investment Committee of the Board of Directors to determine and approve the quantum, timing and other terms and conditions of the issue of the NCD up to INR 300 crore.

Additional interest on defaults and delays

• Payment default or any other Event of Default: additional interest of 2% per annum above the applicable interest rate on the Outstanding Principal Amount, from the date of the default until it is cured or the final redemption amount is paid, whichever is earlier.
• Breach of covenants and undertakings, including financial covenants: additional interest of 2% p.a. over the coupon rate for the defaulting period; the penalty is payable within 30 (Thirty) calendar days from the breach, and at the end of every subsequent thirty calendar day period if the breach continues.
• Delay in security creation: the issuer shall pay additional interest of 2.00% over and above the interest rate.
• Delay in execution of the Debenture Trust Deed: penal interest of at least 2% p.a. over the coupon rate till the deed is executed.

How to read this

A company issuing debentures borrows money from investors and pays them interest, and repays the principal as per the terms. "Secured" means the borrowing is backed by specified assets, here loan receivables, and "listed" means the debentures are proposed to be traded on the National Stock Exchange of India Limited. The additional interest clauses describe the extra cost the company bears if it defaults or is late in meeting specified obligations. The size approved now is up to INR 50 Crores across the two series, while the committee's authorisation is an enabling limit of up to INR 300 crore within which the amount, timing and terms are decided.

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