Board approves allotment of 2,000 secured unlisted NCDs worth Rs. 2,00,00,000 and Rs. 5,00,00,000 loan facility

Board meeting outcome of 01 October 2026.

Thu 1 Oct 2026

NCD Allotment Amount

Rs. 2,00,00,000/- (Rupees Two Crores Only)

Number of NCDs

2,000 Secured, Unlisted, Unrated, Redeemable NCDs

NCD Face Value

Rs.10,000/- each

Coupon Rates and Tenures

12.00% for 3 Years (maturity 01.10.2029) and 12.50% for 5 Years (maturity 01.10.2031)

Loan Facility Authorization

Rs. 5,00,00,000/- from Shriram Finance Limited

What was decided

The Board of this BSE-listed non-banking financial company met on 01 October 2026 (11:30 A.M. to 02:00 PM) and approved two fund-raising items.

NCD allotment

• 2,000 Secured, Unlisted, Unrated, Redeemable Non-Convertible Debentures.
• Face value Rs.10,000/- each, issued on a private placement basis.
• Aggregate amount not exceeding Rs. 2,00,00,000/- (Rupees Two Crores Only).
• Allotment date 01.10.2026. The NCDs are not proposed to be listed.

Terms of the two schemes

• Scheme 1: fixed coupon 12.00%, simple interest, tenure 3 Years, redemption date 01.10.2029.
• Scheme 2: fixed coupon 12.50%, simple interest, tenure 5 Years, redemption date 01.10.2031.
• Interest is payable monthly, on the 1st day of every month starting November 2026, with the last payment on maturity.
• Redemption amount per NCD is 10,000; no redemption premium.

Security

The NCDs are direct and secured obligations, secured by a first ranking pari passu charge with existing secured creditors on the Company's book debts and receivables, both present and future, equal to one time the value of NCDs outstanding plus accrued interest.

Loan authorisation

The Board authorised the Managing Director to avail financial assistance/loan facilities from Shriram Finance Limited up to an aggregate limit of Rs. 5,00,00,000/- under Section 180(1)(c) of the Companies Act, 2013.

How investors may read this

For a lending business, borrowing is raw material: funds raised through NCDs and bank-type facilities can support onward lending. At the same time, a 12.00%–12.50% cost of funds and the charge on book debts and receivables mean interest obligations and secured claims on assets rise. Since the debentures are unlisted and unrated, there is no external credit rating view on them. There is no equity dilution involved, as the instruments are non-convertible.

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