Outcome of Board Meeting pursuant to Regulation 30 and other applicable SEBI LODR Regulations
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Steelco Gujarat's board, at its meeting on 1 January 2026, allotted 16,000 secured, listed, redeemable, partly paid-up non-convertible debentures (NCDs) of face value Rs 1,00,000 each on a private placement basis. The total base issue size is Rs 160 crore, issued at a partly paid-up value of Rs 87,500 per debenture, raising Rs 140 crore initially. The NCDs were allotted to India Resurgence Fund 2 – Scheme 2 and Scheme 4, and will be listed on the Wholesale Debt Market segment of BSE. The instrument carries a 5-year tenure (maturing 31 December 2030) with an investor IRR of 21.90% per annum, comprising variable interest of 6%, 8%, and 10% in years 1, 2, and onwards respectively, plus a redemption premium. The NCDs are backed by first-ranking mortgages, hypothecation, share pledges, and personal and corporate guarantees from group entities.
The company is raising Rs 140 crore of upfront debt at a very high effective cost (~21.9% IRR), which signals significant financing expense ahead and possible dilution of future cash flows for shareholders. Existing equity investors should note that the company's assets and shares have been pledged as collateral, increasing risk if repayment obligations are not met.