Balkrishna Industries Limited has announced the approval from its Finance Committee to raise funds through the issuance of 55,000 rated, listed, unsecured, redeemable, non-convertible debentures (NCDs). The aggregate principal amount for this private placement issuance is set at up to INR 550,00 cross (Indian Rupees Five Hundred Fifty Crore). These NCDs will be issued in three series with tenures ranging from approximately 1 year to 4 years.
Balkrishna Industries Secures Funding Approval
Balkrishna Industries Limited has received approval from its Finance Committee to raise substantial funds through the issuance of non-convertible debentures (NCDs). This strategic move aims to bolster the company’s financial resources via a private placement basis. The committee convened on September 3, 2026, to finalize the proposal.
Key Details of the NCD Issuance
The approved issuance comprises 55,000 rated, listed, unsecured, redeemable, non-convertible debentures. Each debenture has a face value of INR 1,00,000 (Indian Rupees One Lakh only). The total aggregate principal amount for this issuance is capped at INR 550,00,00,000, which translates to Indian Rupees Five Hundred Fifty Crore. The NCDs are intended to be issued in three distinct series, catering to specific investor categories permitted under applicable laws.
NCD Series and Tenures
The NCDs will be structured into three series with varying tenures:
- Series I: A tenure of 1 year, 11 months, and 29 days from the date of allotment.
- Series II: A tenure of 3 years from the date of allotment.
- Series III: A tenure of 4 years from the date of allotment.
The allotment date for all series is set for September 3, 2026. Corresponding maturity dates are September 1, 2028 (Series I), September 3, 2029 (Series II), and September 3, 2030 (Series III). The coupon rates offered are 7.35% p.a. for Series I, 7.38% p.a. for Series II, and 7.40% p.a. for Series III.
Listing and Security
These NCDs are proposed to be listed on the BSE Limited. The securities are characterized as unsecured, meaning no specific assets of the company are charged as collateral for this issuance. Further details regarding the payment schedules, special rights, and any potential delays in interest or principal payments are to be specified in the key information document.
Source: BSE
