The Finance Committee of Balkrishna Industries Limited approved the issuance of 75,000 Non-Convertible Debentures (NCDs) on a private placement basis on March 23, 2026. The aggregate principal amount totals up to INR 7,500,000,000 (₹750 Crore). These unsecured, redeemable NCDs will be issued in three series with tenures ranging from 3 to 5 years and coupons between 7.20% p.a. and 7.55% p.a.
Board Approval for Private Placement Funding
Balkrishna Industries Limited announced the outcome of its Finance Committee meeting held on March 23, 2026. The committee utilized the powers granted earlier to raise necessary funds through the issuance of non-convertible debentures (NCDs) on a private placement basis to eligible investors.
Key Details of the NCD Issuance
The Finance Committee formally approved the issuance of 75,000 NCDs. Each debenture has a face value of INR 100,000 (One Lakh). The total aggregate principal amount targeted for this fundraising exercise is up to INR 7,500,000,000 (Indian Rupees Seven Hundred Fifty Crore).
The NCDs are structured across three series, all designated as unsecured, redeemable, and listed securities intended for listing on the BSE Limited.
Series Structure and Returns
The instruments vary based on tenure and offered coupon rates:
- Series I: Tenure of three (3) years from the allotment date (23.03.2026), with a coupon rate of 7.20% p.a.
- Series II: Tenure of four (4) years from the allotment date (23.03.2026), with a coupon rate of 7.38% p.a.
- Series III: Tenure of five (5) years from the allotment date (23.03.2026), carrying the highest coupon rate of 7.55% p.a.
The maturity dates for the respective series are 23.03.2029, 22.03.2030, and 21.03.2031.
Instrument Characteristics
It is noted that the NCDs are unsecured, meaning no specific charge or security has been created over the company’s assets to back this issuance. Further specific details regarding interest payment schedules, principal redemption, and any special rights attached to the instruments are provided in the accompanying key information document, referred to as “Annexure A”.
Source: BSE
