Intimation of approval of issuance of Non-Convertible Debentures on a private placement basis.
MUKKA · price
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Mukka Proteins Ltd's Board has approved raising funds through two NCD issuances on private placement basis: Tranche 1 of up to Rs. 25 Crores at 12% coupon rate, and Tranche 2 of up to Rs. 50 Crores to be raised in multiple tranches. Total potential fund raise is up to Rs. 75 Crores. The debentures are secured, rated, listed, and redeemable with a tenure of 15 months. Both tranches will be listed on BSE's Wholesale Debt Market segment. The first tranche specifically carries a 12% per annum interest rate payable monthly.
The high 12% coupon rate indicates expensive debt financing for the company, which could impact profitability. The debt raise provides liquidity but increases interest burden. Shareholders should monitor how these funds are deployed and the effect on financial ratios.