Himatsingka Seide Limited has informed the Exchange regarding Outcome of Board Meeting held on May 27, 2026.
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Himatsingka Seide Limited's Board of Directors approved the issuance of two series of Non-Convertible Debentures (NCDs) totaling up to Rs. 850 crore on a private placement basis. Series C NCDs worth Rs. 50 crore (1,000 debentures at Rs. 5 lakh each) are unlisted and unrated. Series 1 NCDs worth Rs. 550 crore (55,000 debentures at Rs. 1 lakh each) are rated and listed, with a green shoe option for an additional Rs. 250 crore. Both series carry an 11.50% p.a. coupon payable quarterly, with a 42-month tenure and principal repaid in three installments at 30, 36, and 42 months. The NCDs are secured by first pari passu charge on the company's fixed assets at Hassan and Doddaballapur manufacturing plants.
This is a significant debt raise of up to Rs. 850 crore for the textile company, which will increase its borrowings and interest obligations. The 11.50% coupon rate indicates relatively high borrowing costs. Shareholders should monitor how these funds are deployed as they will affect the company's debt servicing capacity and future profitability. No equity dilution occurs as NCDs are debt instruments.