Kuantum Papers Limited (the "Company" or "Issuer") has submitted a regulatory disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026.

The disclosure concerns the allotment of non-convertible debentures (NCDs). The Finance Committee of the Company, acting under delegated authority from the Board of Directors (via resolution dated 12 August 2026), approved the allotment at its meeting held on 3 September 2026. The meeting commenced at 4:30 p.m. and concluded at 5:00 p.m.

Key Details of the Allotment

  • Type of Issuance: Private placement.
  • Instrument: 10,000 unlisted, unrated, senior, secured, redeemable, non-convertible debentures (NCDs).
  • Face Value: INR 1,00,000 (Indian Rupees One Lakh) each.
  • Total Issue Size: INR 100,00,00,000 (Indian Rupees One Hundred Crores).
  • Allotment Date: 3 September 2026.
  • Maturity Date: 2 June 2030.
  • Listing Status: The NCDs are unlisted and are not proposed to be listed on any stock exchange.

Financial Terms

  • Total Coupon/Interest: 12.70% per annum.
  • Coupon Breakdown: Comprising a coupon of 9.70% per annum (payable monthly) and a redemption premium of 3.00% per annum (accruing monthly, payable proportionately at redemption).
  • Downgrade Clause: For each notch downgrade from the previous rating of the Issuer, the Coupon Rate will increase by 0.25% over and above the prevailing coupon on the date of downgrade.
  • Default Charge: In case of default in payment of coupon and/or redemption amount, a default charge of 2.00% per annum will be payable from the date of default until rectification.

Security Details

The outstanding amounts under the NCDs are secured by:

1. A subservient charge by way of hypothecation over the current assets (including receivables and lien-marked fixed deposits) and movable fixed assets, present and future, of the Company.

2. Unconditional and irrevocable personal guarantees from Mr. Jagesh Kumar Khaitan and Mr. Pavan Khaitan.

3. A shortfall undertaking from Kapedome Enterprises Limited, backed by its board resolution.

4. A lien-marked fixed deposit equal to 5% of the debenture amount, maintained with a scheduled bank and marked in favour of the Debenture Trustee, Axis Trustee Services Limited.

  • Minimum Security Cover: At least 1.50 times (1.50x) of the aggregate of the Redemption Amount, accrued Coupon, and other Outstanding Amounts must be maintained at all times.

Other Provisions

  • Redemption: The NCDs are redeemable on maturity (2 June 2030) or via early redemption pursuant to the terms of the financing documents.
  • Special Rights: Not applicable (N.A.).
  • Payment History: There are no details of any letters or comments regarding payment/non-payment (NIL).
  • Cancellation: Not applicable (N.A.).

The intimation is signed by Gurinder Singh Makkar, Company Secretary and Compliance Officer (Membership No.: F5124).