Balkrishna Industries Limited has received approval from its Finance Committee to raise funds through the issuance of 55,000 non-convertible debentures (NCDs). The total issue size is up to ₹550 crores, with each debenture having a face value of ₹1,00,000. These NCDs are rated, listed, senior, unsecured, redeemable, non-cumulative, and will be issued on a private placement basis. The issuance will be completed in multiple tranches and is within the company’s borrowing limits.
Fundraising Approval for Balkrishna Industries
Balkrishna Industries Limited announced that its Finance Committee has approved a significant fundraising initiative. The committee has greenlit the issuance and allotment of 55,000 non-convertible debentures (NCDs), aiming to raise a total of up to ₹550 crores. This move is intended to fuel the company’s growth and operational needs.
Details of the Non-Convertible Debenture Issue
Each NCD will have a face value of ₹1,00,000 (Indian Rupees One Lakh), making the aggregate value of the issue ₹550 crores (Indian Rupees Five Hundred Fifty crores). These securities are described as rated, listed, senior, unsecured, redeemable, non-cumulative, and non-convertible. The issuance will be conducted in multiple tranches through a private placement mechanism, targeting eligible investors. The Finance Committee’s powers regarding the terms and conditions for this issuance were previously delegated by the Board of Directors on July 29, 2026.
Compliance and Operational Context
The company confirmed that the total borrowing through these NCDs will remain within the existing borrowing limits applicable to Balkrishna Industries under Section 180(1)(c) of the Companies Act, 2013. The meeting of the Finance Committee, where this approval was granted, took place on August 18, 2026, commencing at 4:00 p.m. and concluding at 4:30 p.m.
Key Terms and Conditions
The debentures are intended to be listed on the BSE Limited. While the exact tenure, coupon/interest rates, schedule of payments, and details of any security or redemption will be disclosed at the time of allotment, the company has specified that there are no special rights or privileges attached to the instrument, nor are there provisions for delays in payment beyond three months from the due date.
Source: BSE
