Mukka Proteins Limited has informed the Exchange about issue of NCD's.
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Mukka Proteins Limited's Board has approved issuance of non-convertible debentures in two tranches - Rs. 25 Crores (Tranche 1) and Rs. 50 Crores (Tranche 2), totaling up to Rs. 75 Crores. The first tranche offers a 12% coupon rate payable monthly with a 15-month tenure. Both tranches will be listed on BSE's Wholesale Debt Market segment. The NCDs are secured, rated, and issued via private placement through Electronic Bidding Platform. These debentures cannot be converted into equity - they are pure debt instruments.
The company is raising debt capital at 12% interest, which signals a relatively high borrowing cost. While this provides liquidity, it also increases interest obligations. Shareholders should note this debt burden and monitor if the raised funds generate returns above the 12% cost.