Pakka Limited Allots Rs 50 Crore via Secured NCDs

Total Allotted: Rs 50 crore; Interest Rates: 19.40% and 11.50% p.a.

Reader Takeaway: This debt secures growth capital but adds significant interest obligations and charges against company assets.

What just happened

Pakka Limited’s Fund Raising Committee approved the allotment of Rs 50 crore in secured, unrated, redeemable non-convertible debentures (NCDs) on October 8, 2026. The issuance is structured into two tranches: a junior series of Rs 30 crore carrying a 19.40% coupon maturing in 2035, and a senior series of Rs 20 crore at an 11.50% coupon maturing in 2033. The debentures were issued to Neo Special Credit Opportunities Fund II, a Category II Alternative Investment Fund.

Why this matters

This allotment represents the execution of part of a larger Rs 540 crore fundraising plan previously sanctioned by the board on May 26, 2026. The funds will likely support the company's expansion or project requirements, though the high-interest cost on the junior series underscores the cost of capital for this debt.

Security and Charge

The NCDs are fully secured. Security coverage includes a charge over new and existing project assets (both movable and immovable), all current assets including receivables and subsidies, insurance contracts, and a pledge of securities held by the company and Yash Agro Products Limited.

Risks to watch

Investors should monitor the impact of these high-interest obligations on the company's bottom line. The extensive security charge implies that a significant portion of company assets is now encumbered to service this debt.

What to track next

The company has significant leeway under the remaining authorized amount from its Rs 540 crore fundraising mandate. Watch for future tranches of debt or equity issuance under this program.