Magnum Ventures Limited has informed the Exchange regarding allotment of 5000 securities pursuant to Non Convertible Securities at its meeting held on August 12, 2025
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Awaiting price reaction for this filing.
Magnum Ventures has allotted 5,000 listed, rated, secured, redeemable NCDs of face value Rs. 1,00,000 each, aggregating to Rs. 50 crores, on a private placement basis to Neo Special Credit Opportunities Fund (managed by Neo Asset Management) along with co-investors. The NCDs carry a high coupon rate of 18% per annum, payable monthly, with a tenure from August 12, 2025 to August 31, 2027 (roughly 2 years). The issue is secured by pari passu charges on company assets, personal guarantees from promoters Pardeep Kumar Jain, Abhay Jain and Parv Jain, and a pledge of 83.24 lakh equity shares held by Parv Jain. Most of the principal (Rs. 45.50 crores) is redeemed as a bullet payment at maturity, with smaller quarterly installments earlier. The funds will be used for capital expenditure and working capital needs.
The 18% interest rate is very high, signalling either a small-cap or financially stretched borrower and meaningfully raising the company's interest cost and debt-servicing burden. For equity shareholders, this adds leverage risk and the promoter share pledge (83.24 lakh shares) is a negative signal that could pressure the stock if covenants are tripped.