Emkay Global Financial Services approved issuing up to ₹50 crore in NCDs. The unsecured, transferable, redeemable, taxable debentures offer an 11.50% coupon rate over three years, with a call option for flexibility. This is a debt capital raising exercise.
Emkay Global Financial Services Plans ₹50 Crore NCD Issuance
Up to INR 50 crore to be raised via NCDs; 11.50% coupon rate. Reader Takeaway: Debt capital raise offers flexibility; standard financing for shareholders. ## What just happened Emkay Global Financial Services Ltd has received board approval to issue Non-Convertible Debentures (NCDs) worth up to INR 50 crore. This includes a base issue size of INR 25 crore and a green shoe option of an additional INR 25 crore. ## Why this matters This move allows Emkay Global to raise debt capital, providing necessary funds for its operations or expansion plans. The NCDs carry a coupon rate of 11.50% per annum, payable semi-annually, and have a tenure of 3 years. ## The backstory Emkay Global Financial Services is a financial services group offering a range of services including investment banking, wealth management, and broking. ## What changes now The company will proceed with the private placement of these rated, listed, senior, unsecured, transferable, redeemable, and taxable NCDs. The debentures are expected to mature on September 7, 2029. ## Risks to watch The NCDs are unsecured, meaning no specific assets are pledged as collateral. A default interest of 2% per annum over the coupon rate will apply if payments are delayed by over three months. ## Peer comparison Financial services companies frequently tap debt markets to manage their capital structures and fund growth. The terms offered are competitive within the current market for similar instruments. ## Context metrics (time-bound) The aggregate issue size is up to INR 50 crore, with a base of INR 25 crore and a green shoe option of INR 25 crore. The coupon rate is 11.50% per annum, payable half-yearly. The tenure is 3 years, with an expected maturity date of September 7, 2029. ## What to track next Investors will be keen to see the final allotment details and the market's reception to these NCDs. The company's ability to service this debt will be a key indicator.
