PAKKA LIMITED has informed the Exchange regarding Outcome of Board Meeting held on May 26, 2026.
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Pakka Limited's board has approved issuance of secured non-convertible debentures (NCDs) worth up to INR 540 crores through private placement. The issuance comprises 32,400 junior secured NCDs (INR 324 crores) at 19.40% p.a. maturing up to May 2035, and 21,600 senior secured NCDs (INR 216 crores) at 11.40% p.a. maturing up to September 2033. The company will create security by mortgaging immovable properties, hypothecating movable assets, current assets, and receivables in favor of a Security Trustee. Additionally, the board approved voluntary withdrawal of CARE ratings (BBB- long term and A3 short term) as part of refinancing existing term loan facilities. This forms part of the company's broader financial restructuring and capital management strategy.
The INR 540 crore debt issuance at high interest rates (especially 19.40% for junior tranche) increases the company's debt burden and financial obligations. Shareholders should monitor repayment capacity and impact on profitability. The voluntary rating withdrawal signals reliance on private placement investors rather than public debt markets.