Transwarranty Finance has received board approval to raise up to Rs 10 crore through the private placement of secured and unsecured non-convertible debentures. The issuance includes multiple series with tenures ranging from 367 days to 5 years and coupons between 11.25% and 15%.
Transwarranty Finance Approves Rs 10 Crore NCD Issuance
Rs 10 crore total NCD size; up to 15% coupon rate for unsecured debt.
Reader Takeaway: The company is raising capital through private debt to manage liquidity; NCDs remain unlisted and privately placed.
What just happened
Transwarranty Finance Limited held a board meeting on October 09, 2026, where directors approved the issuance of unlisted Non-Convertible Debentures (NCDs) on a private placement basis. The total fund-raising target is Rs 10 crore, split equally between secured and unsecured debt instruments.
NCD Issuance Details
The issuance features various tranches to cater to specific investor requirements:
- Secured NCDs (Type A): Total size of Rs 5 crore. These offer interest rates between 11.25% and 11.75% with tenures spanning 13 months, 3 years, and 5 years.
- Unsecured NCDs (Type B): Total size of Rs 5 crore. These carry higher risk with coupons at 12.00% and 15.00% over 367-day and 18-month tenures, respectively.
Security and Terms
The secured debentures are backed by a pari-passu charge on the company’s current assets, providing a layer of collateral for those specific tranches. Conversely, the unsecured NCDs carry no such asset charge, reflecting their higher yield. The company will pay interest on application money from the date of funds realization until the day before allotment.
What this means for shareholders
This move signals the company’s intent to secure targeted liquidity via private channels. Because these instruments are unlisted, they do not impact public market trading liquidity. Shareholders should focus on the upcoming quarterly results to see how these funds are deployed and how the added interest burden influences the company’s debt-servicing ratios.