HIMATSEIDE · price
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Himatsingka Seide Limited's Board of Directors has approved the issuance of two series of Non-Convertible Debentures (NCDs) totaling up to Rs. 600 crore. Series C NCDs worth Rs. 50 crore (1,000 debentures at Rs. 5 lakh each) will be unlisted and unrated, while Series 1 NCDs worth Rs. 550 crore (55,000 debentures at Rs. 1 lakh each) will be listed and rated, with a green shoe option for an additional Rs. 250 crore. Both series carry an 11.50% p.a. coupon payable quarterly, have a 42-month tenure, and principal will be repaid in three equal installments at 30, 36, and 42 months. The NCDs are secured against the company's manufacturing assets at Hassan and Doddaballapur plants, including movable/immovable fixed assets, mortgage on properties, and negative lien over 4.85 acres of land.
The company is raising significant debt capital of Rs. 600 crore (potentially Rs. 800 crore with green shoe) through private placement, which will increase its financial obligations. The 11.50% coupon rate indicates borrowing costs in the current interest rate environment. Shareholders should monitor how these funds are deployed as this could impact future earnings and debt servicing capacity.