Balkrishna Industries Limited announced that its Finance Committee has approved the issuance of 55,000 rated, listed, unsecured, redeemable, non-convertible debentures (NCDs). The face value of each NCD is INR 1,00,000, aggregating to a principal amount of up to INR 550,00,00,000 (INR 5,500 Crore). This issuance will be conducted on a private placement basis across three series with varying tenures and interest rates.
Balkrishna Industries Secures Funding Via NCD Issuance
Balkrishna Industries Limited has received approval from its Finance Committee to raise substantial capital through the issuance of non-convertible debentures (NCDs). The committee, in its meeting held on September 3, 2026, sanctioned the issuance of 55,000 rated, listed, unsecured, and redeemable NCDs. Each debenture carries a face value of INR 1,00,000, leading to an aggregate principal amount of up to INR 550,00,00,000 (INR 5,500 Crore). The fundraising exercise is set to take place via a private placement mechanism.
Details of the NCD Issuance
The NCDs will be issued in three distinct series, catering to different investment horizons and offering varied coupon rates. The tenure for Series I NCDs will be 1 year, 11 months, and 29 days from the allotment date, with a coupon rate of 7.35% p.a. Series II NCDs will have a tenure of 3 years from allotment, bearing an interest rate of 7.38% p.a. Lastly, Series III NCDs will mature in 4 years from the allotment date, offering a coupon of 7.40% p.a. The proposed date of allotment for all series is September 3, 2026, with maturity dates set for September 1, 2028 (Series I), September 3, 2029 (Series II), and September 3, 2030 (Series III).
These NCDs are intended to be listed on the Bombay Stock Exchange (BSE) Limited, providing liquidity to investors. The company previously intimated its intention to raise funds through this route via a letter dated August 18, 2026. The detailed terms and conditions, including the schedule of payment of coupon/interest and principal, charge over assets, and any special rights attached to the instruments, will be as specified in the key information document.
Source: BSE
