The Board of Director of the company issuance the NCD
Awaiting price reaction for this filing.
The Board of BCL Enterprises Ltd has approved the issuance of Secured, Unlisted, Unrated, Redeemable Non-Convertible Debentures (NCDs) on a private placement basis, aggregating up to Rs 200 Crores in one or more tranches. Each NCD has a face value of Rs 1,00,000 with a tenure of 60 months (5 years). The coupon rate is Nil, but the effective Internal Rate of Return (IRR) is 13% per annum, compounded monthly and paid as a bullet payment at maturity along with the principal. The NCDs will be secured by hypothecation of assets in favour of a Debenture Trustee and will not be listed on any stock exchange. In case of default, an additional 2% penalty over the IRR will apply on unpaid amounts.
This is a Rs 200 Crore debt raise at an effective 13% yield, which is a relatively high borrowing cost and signals meaningful credit risk for investors. Shareholders should note that the company is significantly increasing its leverage, and future interest costs will weigh on profitability. The unlisted and privately placed nature means there will be no secondary market liquidity for these NCDs.