Allotment of Non-Convertible Debentures
ARIHANT · price
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Arihant Foundations & Housing has allotted 450 Non-Convertible Debentures (NCDs) on a private placement basis, raising ₹45 Crores in total. Each NCD has a face value of ₹10 lakh and carries a coupon rate of 12.5% per annum, payable monthly. The tenure is 30 months with redemption at par. The NCDs are senior, secured, unrated, and unlisted, and were allotted to a Category II Alternative Investment Fund (AIF) registered with SEBI. The allotment was approved by the Board on 20th February 2026.
The 12.5% interest rate is significantly high, indicating the company is paying a premium for borrowing, which suggests either higher risk perception or strong cash flow needs. For existing shareholders, this means additional debt on the books (₹45 Cr) with a notable interest expense, but no equity dilution since these are non-convertible. The short tenure of 30 months means repayment pressure will build within a couple of years.