Authum allots Rs 250 Cr NCRPS to promoter on private placement
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On the reaction day the stock moved 2.1 pts less than Nifty Midcap 150 and 1.6 pts less than its Non Banking Financial Company (NBFC) peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Authum Investment and Infrastructure has allotted 25 lakh 0.01% Non-Cumulative Non-Convertible Redeemable Preference Shares at Rs 1,000 per share (face value Rs 10, premium Rs 990), raising Rs 250 Crores. The NCRPS were allotted to Mentor Capital Limited, the company's promoter, on a private placement basis. The coupon rate is extremely low at 0.01 percent per annum.
Promoter infusion of Rs 250 Cr strengthens capital base without equity dilution since NCRPS are non-convertible; near-zero coupon means minimal payout burden.