Approved raising of funds through issuance of secured, unrated, unlisted, redeemable non-convertible debentures in multiple tranches (NCDs)
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Galada Finance's board has approved raising Rs. 20 crore through secured, unrated, unlisted, redeemable non-convertible debentures (NCDs) via private placement. The NCDs will carry a fixed coupon of 12% per annum, with interest payable on redemption at the end of the 60-month (5-year) tenor. The instruments will be secured by a first-ranking exclusive charge on identified loan receivables of the company. The board also appointed an independent registered valuer in connection with a separate proposed issuance of share warrants and/or equity shares on a preferential basis.
The 12% coupon is a relatively high-cost borrowing, which will raise interest expenses and increase leverage, but no equity dilution occurs from this NCD tranche. Existing shareholders should watch for the related preferential warrant/equity issue, which could dilute their holdings.