Outcome of the Board Meeting
DECCANCE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.7 pts less than Nifty Microcap 250 and 2.4 pts less than its Cement & Cement Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Deccan Cements Limited's Board approved raising up to Rs. 660 crores through Non-Convertible Debentures (NCDs) of Rs. 557 crores and Compulsorily Convertible Debentures (CCDs) of Rs. 103 crores. The NCDs carry escalating coupon rates starting at 8% p.a. in Year 1, rising to 10% in Year 2 and 12% p.a. from Year 3 onwards, with a 72-month tenor and 6% p.a. redemption premium. The CCDs are being issued to 5 Neo Funds at Rs. 715 per CCD (convertible into 1 equity share at Rs. 715 each within 18 months). The proceeds will be used to repay outstanding term loans and related liabilities. Shareholder approval via postal ballot is being sought for the CCD issuance.
The 12% yield on NCDs from Year 3 onward signals a relatively high borrowing cost, suggesting the company may be under financial stress or considered higher risk by investors. Debt repayment reduces interest burden but the high coupon rates could pressure future earnings. The conversion of CCDs will dilute equity but also reduce debt.