Varroc Engineering Limited has informed regarding issuance, allotment of Commercial Papers
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Varroc Engineering has issued and allotted Commercial Papers (CPs) aggregating Rs. 50 crores to Kotak Mahindra Bank Limited. The CPs carry a face value of Rs. 5,00,000 per unit, with 1,000 units issued at Rs. 4,91,635.5 each, implying a discount rate of 6.90%. The tenure is 90 days, maturing on November 20, 2025. ICICI Bank is the Issuing and Paying Agent. The company is awaiting NSE listing approval for these CPs.
This is a routine short-term borrowing of Rs. 50 crores, likely to fund working capital needs. The 6.90% discount rate is in line with prevailing market rates and is unlikely to have any material impact on the stock price or shareholder value.