Share India Securities Issues Secured NCDs Worth ₹75 Crore

Share India Securities Ltd will issue Non-Convertible Debentures (NCDs) worth ₹75 crore, including a ₹25 crore green shoe option.

Reader Takeaway: Company raises debt for liquidity with secured NCDs; monitor overall fundraising progress.

What just happened

Share India Securities Limited's Finance Committee has approved the issuance of listed, rated, secured, and redeemable Non-Convertible Debentures (NCDs) through private placement. This issuance is part of a larger board authorization to raise up to ₹200 crore via debt securities.

The total issuance amount is ₹75 crore, which includes a green shoe option of ₹25 crore. These NCDs carry a coupon rate of 10.50% per annum, payable monthly, and have a tenure of up to 18 months and 18 days.

Why this matters

This move indicates the company is actively tapping the debt market to manage its liquidity needs and fund its operations. For investors, these NCDs offer a fixed return of 10.50% with secured backing, though they are part of the company's broader fundraising efforts which should be monitored.

The backstory

The company's board had previously authorized raising up to ₹200 crore through debt securities on July 24, 2026. This current NCD issuance is a step towards achieving that aggregate target.

What changes now

The approval allows the company to proceed with raising ₹75 crore, enhancing its capital structure. Investors in these NCDs will have a claim on the company's current assets and receivables, providing a degree of security.

Risks to watch

While the NCDs are secured with a pari-passu charge on current assets (1.35x cover), including Margin Trading Facility (MTF) receivables, there is a potential watch point regarding reliance on MTF receivables for collateral. Additionally, a 2% per annum penalty applies if payments are delayed by over three months, highlighting standard credit risk safeguards.

Peer comparison

Financial services companies often use NCD issuances to manage working capital and liquidity. The 10.50% coupon rate is competitive within the current debt market for similar rated instruments, though specific peer comparisons for NCDs are typically private.

Context metrics

• Total Issue Size: ₹75 crore (including ₹25 crore green shoe)
• Coupon Rate: 10.50% per annum
• Tenure: Up to 18 months and 18 days
• Asset Cover: Minimum 1.35 times the outstanding amount on current assets.
• Face Value per NCD: ₹10,000

What to track next

Investors should monitor the company's progress in meeting its total ₹200 crore fundraising target. It will also be important to observe the overall credit quality of the company's MTF receivables and the broader balance sheet health.