ARSS Infra board okays Rs 250 Cr preference share issue to promoter

Ncd High Yield 12pctFund Raising View source PDF

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Board approved issuing 25 crore non-cumulative non-convertible redeemable preference shares to promoter Ocean Capital Market Ltd on private placement basis, raising Rs 250 Cr. Coupon is only 0.01% but redemption carries 12% IRR over 22 months. Shares are unsecured and unlisted. Also raised authorized capital from Rs 110 Cr to Rs 500 Cr. New Company Secretary Rajendra Biswal appointed. Postal ballot sought for shareholder approval.

Likely market impact

Promoter lends Rs 250 Cr at 0.01% coupon but 12% IRR on redemption favors the promoter. Unlisted, unsecured. Subject to shareholder approval.