Pace Digitek Ltd has received board approval to raise up to Rs 250 crore through the issuance of secured, redeemable non-convertible debentures (NCDs). The debt will be issued via private placement and listed on the BSE Wholesale Debt Market segment. While the board has greenlit the total amount and quantity, key financial terms including interest rates, tenure, and repayment schedules remain pending and will be disclosed in the final Key Information Document at the time of allotment.
Pace Digitek Board Approves Rs 250 Crore NCD Issuance
Total issue size up to Rs 250 crore; 2,50,000 NCDs to be offered via private placement.
Reader Takeaway: Company boosts capital reserves via secured debt, but interest burden remains unclear pending final coupon disclosures.
What just happened
The Board of Directors of Pace Digitek Ltd approved the issuance of listed, rated, secured, and redeemable non-convertible debentures (NCDs) during their meeting on October 12, 2026. The company intends to raise up to Rs 250 crore by issuing 2,50,000 NCDs, each with a face value of up to Rs 10,000.
Why this matters
This move marks a shift in the company's capital management strategy. By choosing a private placement for these NCDs, the company is opting for a targeted debt raise rather than a public issue. These instruments will be listed on the Wholesale Debt Market segment of the BSE, providing liquidity for institutional and high-net-worth debt investors.
What changes now
Following this board approval, the company is preparing for the execution of the issue, which may occur in one or more tranches. The immediate impact on the company's balance sheet will be an increase in total debt obligations.
Risks to watch
Investors currently lack visibility on the cost of this capital. The company has explicitly stated that details regarding the interest rate (coupon), the tenure of the debentures, and specific redemption terms are yet to be finalized. These parameters will significantly dictate the company's future interest coverage ratio and cash flow obligations.
What to track next
Shareholders and potential debt investors should watch for the upcoming Key Information Document (KID). This document will contain the specific interest rates, security charge details, and the stated purpose for which these funds will be utilized, providing a clearer picture of the company's long-term leverage profile.