Key Quantitative Figures
- Number of NCDs Allotted: 300 (Three Hundred)
- Face Value per NCD: ₹5,00,000 (Rupees Five Lakh)
- Total Issue Size: ₹15,00,00,000 (Rupees Fifteen Crores)
- Coupon Rate: 11.50% per annum
- Tenure: 42 months
Dates of Action
- Date of Allotment: July 13, 2026
- Deemed Date of Allotment: July 13, 2026
- Date of Maturity: January 13, 2030
Parties Involved & Purpose
The Securities Committee of the Board of Directors of Himatsingka Seide Limited approved the allotment. The NCDs were issued on a private placement basis to eligible investors. The purpose is fundraising.
Key Terms of NCDs (From Annexure A)
Type of Issuance: Private placement to eligible investors
Listing Status: The NCDs are unlisted and will not be listed on any stock exchange.
Interest Payment: 11.50% p.a. coupon payable quarterly.
Principal Repayment Schedule: Principal will be repaid in three instalments:
- At the end of 30 months
- At the end of 36 months
- At the end of 42 months (maturity)
Security Created:
- A first pari passu charge by way of registered/equitable mortgage and deed of hypothecation over the entire immovable and movable fixed assets (present and future) located at the company's manufacturing plants in Hassan and Doddaballapur, Karnataka.
- A negative lien over land admeasuring 4.85 acres located at Sy. No. 25, 17/1, 17/2 & 23 at its Hassan manufacturing facility.
- An exclusive charge over the Subscription Escrow Account.
- A Demand Promissory Note and Letter of Continuity.
Default Interest: A delay in payment of interest/principal for more than three months from the due date will attract an additional 2% interest.
Other Features: The instrument is Senior, Secured, Unrated, Redeemable, Taxable, and Transferable.
Financial Impact
The issuance results in an inflow of ₹15 crore for the company. The financial impact on earnings (interest expense) is quantified at an annual rate of 11.50% on the principal amount.