Finance Committee approves NCD issue of up to Rs. 25 crore at 11.50% coupon
Finance Committee approved issuing up to 25,000 Non-Convertible Debentures of Rs. 10,000/- face value each, aggregating up to Rs. 25,00,00,000 (Rs.
By ScoutQuest · · 2 min read
- Issue size
- up to Rs. 25,00,00,000 (Rs. 25 crore) via 25,000 NCDs of Rs. 10,000 face value each
- Coupon
- 11.50% per annum, payable monthly
- Tenure
- 30 months; principal repaid in 7 installments
Debt issue approved by the Finance Committee
At its meeting on November 04, 2026, the Finance Committee of the Board considered and approved the issuance of up to 25,000 (Twenty Five Thousand) Senior, Secured, Rated, Listed, Redeemable, Transferable, INR Denominated, Non-Convertible Debentures having a face value of Rs. 10,000/- each, for an aggregate nominal value of up to Rs. 25,00,00,000 (Rupees Twenty Five Crores Only), for cash, at par, on a private placement basis in one or more tranches.
The issue is within the current borrowing limits applicable to the Company under Section 180(1)(c) of the Companies Act, 2013.
Terms of the instrument
- Coupon: 11.50% per annum, payable monthly.
- Tenure: 30 months from the deemed date of allotment and maturity.
- Repayment: the principal amount outstanding is to be repaid in 7 (Seven) installments, with the final principal payment on the maturity date, i.e. 30 months from the deemed date of allotment.
- Listing: the debentures are proposed to be listed on the Whole Sale Debt Segment of BSE Limited.
- Security: a first ranking pari passu continuing charge to be created in favour of the Debenture Trustee under an unattested deed of hypothecation over the identified book debts/loan receivables of the issuer, along with such other security interest, including any other assets of the company, as may be agreed between the issuer and the debenture holders.
- Default interest: on the occurrence of any payment default, additional interest of 2% per annum over the interest rate will be payable on the outstanding principal amounts from the date of such default until it is cured or the debentures are fully redeemed, whichever is earlier.
What investors can take away
- This is a borrowing through non-convertible debentures, meaning the instrument does not convert into equity shares on its stated terms.
- The coupon of 11.50% paid monthly indicates the ongoing cash interest cost on this borrowing.
- The principal is repaid in installments over the 30-month life rather than as a single bullet payment at the end.
- The borrowing is secured against identified book debts/loan receivables, so the lenders have a charge over those assets.
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More numbers
- Number of NCDs approved25,000
- Face value per NCDRs. 10,000/-
- Aggregate nominal value of issueRs. 25,00,00,000/-
- Coupon rate per annum11.50%
- Tenure of the instrument30 (Thirty) Months
- Number of principal installments7 (Seven) installments
- Additional interest on payment default2% (two percent) per annum
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