Anand Rathi Share and Stock Brokers has allotted secured non-convertible debentures worth Rs 11.50 crore to raise debt capital. The unlisted, redeemable instruments carry a 9% annual coupon rate with a quarterly payment schedule over a three-year tenure.
Anand Rathi Share and Stock Brokers Allots Rs 11.5 Crore NCDs
1150 NCDs worth Rs 11.50 crore allotted. 9% annual coupon rate fixed for three-year tenure.
Reader Takeaway: This debt raise provides capital without equity dilution, secured by a first-ranking charge on company receivables.
What just happened
Anand Rathi Share and Stock Brokers Limited has officially allotted 1,150 secured, unlisted, and redeemable Non-Convertible Debentures (NCDs) on October 28, 2026. The total issue size is Rs 11.50 crore, with each debenture carrying a face value of Rs 1,00,000.
Why this matters
This transaction represents a strategic debt-financing move. By opting for a private placement of NCDs, the company secures funding without diluting the equity stakes of existing shareholders. The instrument includes a quarterly interest and principal payment schedule, allowing for systematic debt servicing.
Security and Terms
The NCDs are secured by a first-ranking charge through hypothecation over the company's present and future unencumbered assets, book debts, and receivables. The debt matures on October 29, 2029. Notably, the agreement includes a default provision where an additional 2% per annum interest becomes applicable if payments are delayed beyond three months.
What to track next
Investors should monitor the company's quarterly cash flow commitments related to these interest and principal repayments to assess the impact on overall liquidity and debt coverage ratios.