Share India Securities is issuing secured, non-convertible debentures worth ₹150 crore with a 10.50% annual coupon rate and a 25-month tenure. The funds will support business operations, likely related to margin trading, with assets and promoter guarantees as security.
Share India Securities Approves ₹150 Crore NCD Issuance
Aggregate Issue Size: ₹150 crore
Coupon Rate: 10.50% p.a.
What just happened
Share India Securities Limited has approved the issuance of 150,000 secured, rated, non-convertible debentures (NCDs) with a face value of ₹10,000 each, totaling ₹150 crore. The debentures will be listed on the BSE's Wholesale Debt Market (WDM) segment.
Why this matters
This issuance is part of the company's larger plan to raise up to ₹300 crore, initially announced on July 30, 2025. The funds raised will bolster the company's capital for business operations, particularly its Margin Trading Facility (MTF) receivables, given the security structure.
The backstory
The company had previously announced its intention to raise up to ₹300 crore. This ₹150 crore NCD issuance represents a significant step in executing that broader fundraising strategy. The 25-month tenure NCDs offer a 10.50% annual coupon rate, payable monthly.
What changes now
The company secures additional capital through a planned debt issuance. Investors gain an opportunity to invest in secured debt instruments from a listed financial services provider.
Risks to watch
Investors should be aware of a 2% p.a. default penalty if payments are delayed over three months. The security structure, while robust, includes personal guarantees from promoters and directors, which investors should monitor as part of the overall governance.
Peer comparison
Share India Securities operates in the financial services sector, competing with other brokers and NBFCs. This debt issuance is a common capital-raising tool in the industry to fund expansion and working capital needs.
Context metrics (time-bound)
The NCDs have a tenure of 25 months. The security cover is a minimum of 1.35 times the outstanding amount. The coupon rate is 10.50% per annum, with principal repayment through scheduled half-yearly partial redemptions.
What to track next
Shareholders should monitor the company's leverage ratios and the effective utilization of the raised funds in its core business operations, particularly its MTF segment.