Board approves allotment of Rs. 2,00,00,000 secured NCDs and loan facility of Rs. 5,00,00,000 from Shriram Finance

Board met on 1 October 2026 and approved two funding steps.

Thu 1 Oct 2026

NCD Face Value

Rs.10,000/- each

NCD Aggregate Amount

not exceeding Rs. 2,00,00,000/-

Scheme 1 Coupon & Tenure

12.00% coupon for 3 Years (redemption 01.10.2029)

Scheme 2 Coupon & Tenure

12.50% coupon for 5 Years (redemption 01.10.2031)

Loan Facility Authorization

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

What was approved

The Board of Directors met on Thursday, October 1, 2026 (11:30 A.M. to 02:00 PM) and approved two items relating to raising funds.

• Allotment of 2,000 Secured, Unlisted, Unrated, Redeemable Non-Convertible Debentures of face value Rs.10,000/- each, on a private placement basis, for an aggregate amount not exceeding Rs. 2,00,00,000/-.
• Authorisation to 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.

Terms of the debentures

The issue has two schemes, both with a fixed, simple coupon and monthly interest payment on the 1st day of every month starting from November 2026.

• Scheme 1: coupon 12.00%, tenure 3 Years, allotment 01.10.2026, redemption 01.10.2029.
• Scheme 2: coupon 12.50%, tenure 5 Years, allotment 01.10.2026, redemption 01.10.2031.
• Redemption amount per NCD: 10,000 in both schemes. No redemption premium.

Security

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

The debentures are not proposed to be listed. Redemption will be out of profits or out of a fresh issue, as may be determined by the Board.

How to read this

The company is a non-banking financial company, for which borrowing is the normal way of funding lending activity. The approvals add up to a potential borrowing capacity of Rs. 2,00,00,000/- through debentures plus Rs. 5,00,00,000/- from Shriram Finance Limited. Investors may note the cost of this money, at 12.00% and 12.50%, and that the debenture holders have a charge over the company's receivables.

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