Outcome of Finance Committee Meeting for issuance of 35000 NCD
Price
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Unifinz Capital India Ltd's Finance Committee has approved the issuance of 35,000 listed, rated, senior, secured non-convertible debentures (NCDs) worth INR 35 crore on a private placement basis, with a green shoe option for an additional 20,000 NCDs worth INR 20 crore. The NCDs carry a face value of INR 10,000 each with an issue price of INR 10,067.68 per debenture. The coupon rate is 13% per annum, payable monthly, and the tenure is approximately 23 months with maturity on April 23, 2028. The debentures are secured by a first-ranking charge over the company's book debts and receivables with asset coverage of 1.20x the outstanding amount.
The 13% coupon rate is notably high, suggesting the company faces elevated borrowing costs or risk perception in the market. This increases the company's debt servicing burden and could impact profitability for existing shareholders.