Dishman Carbogen Amcis has announced a new Rs 38 crore NCD issuance at a 10% coupon rate. Simultaneously, the company is seeking to replace an existing land-based security for a separate Rs 15 crore debenture tranche with a 100% cash margin, pending exchange approval.
Dishman Carbogen Amcis Debt and Security Update
Aggregate new issuance Rs 38 crore; existing security modification for Rs 15 crore debt.
Reader Takeaway: New debt adds financial leverage while collateral switch to cash provides liquidity for the company's property.
What just happened
The Board of Directors of Dishman Carbogen Amcis Ltd approved the issuance of new senior, secured, rated, listed, transferable, and redeemable Non-Convertible Debentures (NCDs) worth Rs 38 crore. These debentures will have a tenure of 18 months and carry a coupon rate of 10% per annum, payable quarterly with a bullet repayment at maturity. The security cover is set at 1.10x, backed by land in Ahmedabad owned by Dishman Infrastructure Limited (DIL), a corporate guarantee from DIL, and a three-month interest service reserve account.
Modification of Existing Security
In a separate move, the board approved changing the security terms for an existing NCD tranche (Scrip Code: 978230) valued at Rs 15 crore. The company intends to release the current mortgage held over DIL’s land parcel and substitute it with a 100% cash margin as a lien-marked fixed deposit.
Why this matters
The company aims to free up the DIL-owned land parcel for commercial use. By replacing the land mortgage with a cash margin, the firm believes it is offering a more liquid security structure to debenture holders.
Risks to watch
The proposed security modification is subject to prior approval from the stock exchange and must comply with SEBI (LODR) regulations. Shareholders should monitor the regulatory clearance process for this substitution, as it is essential for the transition to take effect.