Patel Engineering Limited has informed the Exchange about General Updates
PATELENG · price
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Patel Engineering's Allotment Committee approved the issuance of 5,000 Senior, Secured, Rated, Listed and Transferable Non-Convertible Debentures (NCDs) with a face value of ₹1,00,000 each, aggregating to ₹50 crore, with a Green Shoe option of another ₹50 crore, taking the total size up to ₹100 crore. The NCDs will be issued through private placement and listed on the NSE, with a tenure of 36 months and a coupon rate of 10.25% paid monthly. Principal repayment is structured as 30% at 24 months, 30% at 30 months, and 40% at 36 months. The issue is secured by a first-ranking exclusive charge on identified land parcels of the company.
The company is raising up to ₹100 crore of debt at 10.25% interest, which will increase its interest costs and overall debt burden but provides funding for operations or projects. For equity shareholders, this is a debt dilution of earnings (since it does not raise equity) and adds leverage, though the structured repayment schedule eases near-term cash flow pressure.