Nuvoco Vistas Corporation Limited has informed the Exchange about General Updates
NUVOCO · price
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Nuvoco Vistas has executed subscription and option agreements for the issuance of Series B unsecured, unlisted Compulsorily Convertible Debentures (CCDs) worth up to ₹300 crore by its wholly-owned subsidiary Vadraj. Investors will earn a fixed IRR of 14.75% over 3 to 4 years. Nuvoco holds a call option to buy back the CCDs; if not exercised, investors can put them to promoter entity Niyogi Enterprise (holding 60.16% of Nuvoco), which can settle in cash or by transferring Nuvoco shares. Proceeds will be used to repay financial assistance already extended to Vadraj and cover issuance costs. The deal is classified as a related party transaction done at arm's length, with the promoter group required to maintain at least 51% of Vadraj's fully diluted share capital.
The 14.75% IRR reflects an expensive funding structure at the subsidiary level. The put option tied to promoter-held Nuvoco shares introduces potential equity overhang or share transfer risk if the company fails to repurchase the CCDs. Shareholders should watch for any dilution risk or impact on Nuvoco's consolidated debt and Vadraj's valuation.