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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Purshottam Investofin Ltd has allotted 30 unsecured, unrated, unlisted, redeemable Non-Convertible Debentures (NCDs) of Rs. 1 crore each, aggregating to Rs. 30 crore, on a private placement basis at par. The NCDs carry a fixed coupon of 13% per annum with quarterly interest payments and a principal redemption at the end of 18 months (maturity on September 24, 2027). Investors also have a put option after 6 months, exercisable monthly with 7 days' notice, allowing early redemption at par. The instruments are unsecured, unlisted, and have no prepayment charges, with a 2% additional interest penalty in case of default.
The company is raising Rs. 30 crore of debt at a relatively high cost of 13% p.a., which is a sign of aggressive borrowing likely to pressure future interest expenses and earnings. For shareholders, this means increased leverage without any equity dilution, but the high coupon and unsecured nature indicate the company is offering attractive terms to lenders, which could be a concern about credit quality.