Rs 500 Crore Secured NCDs Allotted on Private Placement at 7.81% Coupon

Apollo Tyres has allotted 50,000 secured, listed, rated, redeemable NCDs of Rs 1,00,000 face value each, aggregating Rs 500 Crores, on a private placement basis.

Wed 30 Sep 2026

NCD Amount

Rs 500 Crores

Number of NCDs

50,000

Face Value per NCD

Rs 1,00,000

Coupon Rate

7.81% per annum

Maturity Date

September 28, 2029

What was allotted

• 50,000 NCDs of face value Rs 1,00,000 each, aggregating Rs 500 Crores
• Type: Secured, Listed, Rated, Redeemable Non-Convertible Debentures
• Mode: Private Placement (offered to select investors, not the public)
• Proposed listing: National Stock Exchange of India Ltd. (NSE)

Terms

• Coupon: 7.81% per annum, payable annually
• Date of allotment: September 30, 2026; date of maturity: September 28, 2029
• Redemption: bullet repayment at maturity, meaning the entire principal is repaid in one go at the end
• No premium or discount on issue price or redemption value, so the effective yield for an investor holding to maturity equals the coupon rate
• Penal interest of 1% per annum applies on delay in payment of interest or principal beyond three months from the due date

Security

The debentures are secured by a first pari-passu charge on the company's tangible movable fixed assets, present and future, excluding certain wind mills purchased under a deferred consideration payment plan and engineering materials purchased under a parts management agreement scheme from creditors. The company must maintain a security cover of 1.25x on a book value basis.

How to read this

This is a debt-raising exercise, not an equity issue, so there is no dilution for existing shareholders. It adds Rs 500 Crores of borrowing at a fixed cost of 7.81% a year for roughly three years, with the principal falling due in one instalment in September 2029. The charge on movable fixed assets means those assets back the lenders' claim. The approval was given at a meeting of the Committee of Directors-NCDs held on September 30, 2026, which ran from 2:15 PM to 2:40 PM.

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