Submission of Asset Cover Details
Awaiting price reaction for this filing.
Ramasigns Industries has filed its asset cover certificate with BSE for the quarter ended 30 June 2025 in connection with its Non-Convertible, Rated, Listed, Unsecured, Redeemable Debentures (NCDs) worth Rs. 7.20 Crores. The asset coverage ratio for unsecured lenders stands at 3.467, with net assets of Rs. 23.38 Crores backing total unsecured borrowings of Rs. 6.74 Crores (including Rs. 4.89 Crore NCDs, Rs. 1.55 Crore other borrowings, and Rs. 30.82 lakh term loans). The company's debt-equity ratio is set to rise from 0.18 to 0.74 after this NCD issue. Importantly, the chartered auditor flagged that the company has not complied with financial covenants (Clause 9.8 and 9.9) of the Debenture Trust Deed and has failed to pay interest and principal to debenture holders on time for June 2025.
This is a negative signal for shareholders — the company has defaulted on its NCD interest and principal obligations and breached debenture trust deed covenants, pointing to potential cash flow stress. This could trigger lender action, credit rating downgrade, and pressure on the stock price.