We hereby inform that the Board at its meeting held today has approved issuance of securities as described in the attachment.
HIMATSEIDE · price
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Himatsingka Seide's board has approved the issuance of two series of Non-Convertible Debentures (NCDs) totalling up to Rs. 600 crore. Series C NCDs worth Rs. 50 crore are unrated and unlisted, while Series 1 NCDs worth Rs. 550 crore are rated and listed on a stock exchange, with a green shoe option of up to Rs. 250 crore. Both series carry an 11.50% p.a. coupon payable quarterly, have a 42-month tenure, and are being issued at par on a private placement basis. The company has created first pari passu charges over its movable and immovable fixed assets at Hassan and Doddaballapur plants, along with a mortgage on mortgaged properties and a negative lien over 4.85 acres of land at the Hassan facility, providing 1.75x asset cover. Principal repayment for both series is structured in three equal instalments at months 30, 36, and 42.
The company is raising Rs. 600 crore through debt to potentially repay existing obligations or fund operations. The 11.50% coupon rate signals elevated borrowing costs, which could indicate tighter financial conditions. The asset-backed structure with 1.75x cover provides security to debenture holders, but significant debt accumulation may weigh on the company's equity valuation and shareholder returns.