Outcome of the meeting of the Finance Committee of the Board of Directors of Balkrishna Industries Limited for the approval of issuance of 75000 rated, listed, unsecured, redeemable, non-convertible ....
BALKRISIND · price
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Balkrishna Industries' Finance Committee has approved the issuance of 75,000 unsecured, listed, redeemable, non-convertible debentures (NCDs) with a face value of ₹1,00,000 each, aggregating up to ₹750 Crore. The NCDs will be issued on a private placement basis in three series with tenures of 3, 4, and 5 years, carrying coupon rates of 7.20%, 7.38%, and 7.55% per annum respectively. The securities are unsecured and proposed to be listed on BSE, with the date of allotment fixed as 23 March 2026. This follows the company's earlier intimation dated 25 February 2026 about plans to raise funds through NCDs.
The company is raising ₹750 Crore through debt rather than equity, meaning no dilution for existing shareholders. The coupon rates of 7.20%-7.55% are reasonable for a well-rated company like Balkrishna Industries, and the proceeds are likely to be used for capacity expansion, working capital, or refinancing existing debt.