We wish to inform that the Board of Directors of the Company at its meeting held today (i.e., 14th May 2026), inter alia, has considered and approved the following matters: 1. To raise ....
DECCANCE · price
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Deccan Cements Ltd's board approved raising Rs.660 Crore through a combination of Non-Convertible Debentures (NCDs) of Rs.557 Crore and Compulsorily Convertible Debentures (CCDs) of Rs.103 Crore via private placement. The proceeds will be used to repay outstanding term loans and related liabilities. The CCDs are subscribed by five Neo Credit fund entities (Neo Credit Opportunities Fund I, Neo Special Credit Opportunities Fund, Neo Special Credit Opportunities Fund II, Neo Special Credit Opportunities Fund II A, and Neo Prime Fund) at a face value of Rs.715 per CCD, convertible into one equity share (Rs.5 face value + Rs.710 premium) within 18 months. The NCDs carry a step-up coupon of 8% p.a. in Year 1, 10% in Year 2, and 12% p.a. from Year 3 onwards payable monthly, plus a 6% p.a. redemption premium. The company has secured the NCDs with first charge on its plant land, immovable assets, movable assets, and second charge on current assets. Shareholder approval via postal ballot is being sought for the CCD issuance.
This is a refinancing transaction that replaces expensive term loan debt with structured debentures, likely reducing the company's financial burden. The 12% coupon on NCDs from Year 3 onwards signals relatively high borrowing costs. The involvement of five Neo Credit funds as named investors provides institutional credibility, and the 18-month CCD conversion timeline means dilution is ahead.