CESC Limited’s Committee of the Board of Directors has approved the issuance of 19,000 Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures (NCDs). The total value of this issuance is ₹190 crore, with each debenture having a face value of ₹1 lakh. The NCDs will be issued on a private placement basis. This move aims to raise capital for the company’s ongoing operational and strategic needs.
CESC Secures ₹190 Crore Through Debt Issuance
In a significant capital-raising move, CESC Limited has announced the approval for the issuance of ₹190 crore worth of Secured, Unlisted, Redeemable, and Rated Non-Convertible Debentures (NCDs). The decision was made by the Committee of the Board of Directors during a meeting held on September 22, 2026.
Details of the Debt Issuance
A total of 19,000 NCDs will be issued, each carrying a face value of ₹1 lakh. The debentures are set to be issued at par, aggregating to the total amount of ₹190 crore. This issuance will be conducted on a private placement basis. The detailed terms and particulars of these NCDs are further elaborated in Annexure A of the disclosure.
Key Features of the NCDs
The NCDs are structured as Secured, Unlisted, Redeemable, and Rated instruments. The issuance is planned for a Private Placement. The total number of securities proposed to be issued is 19,000, amounting to approximately INR 190,00,00,000/-. These debentures are unlisted and will have a tenure of 5 years from the deemed date of allotment, which is set for September 24, 2026. The maturity date is scheduled for September 24, 2031.
Interest and Redemption Structure
The coupon rate for these debentures will be based on One Month MIBOR OIS plus a spread of 2.20% per annum. Interest payments will be made monthly, with the coupon payment schedule being the last day of each month commencing from the deemed date of allotment. The principal redemption is scheduled over a period of five years, with the final redemption date being September 24, 2031. The principal redemption schedule details multiple installments from December 31, 2027, up to September 24, 2031, each amounting to ₹11,87,50,000.
Security and Other Provisions
The NCDs will be secured by a first-ranking pari passu charge by way of mortgage over the company’s immoveable fixed assets, both present and future. Additionally, a first-ranking pari passu charge by way of hypothecation will be created over the company’s moveable fixed assets. The security cover is stipulated at 1.10 times the principal amount. The debentures also feature a Call/Put Option exercisable at the end of 3 years from the deemed date of allotment, at par. In case of default, an additional interest of 2% per annum will be applicable.
Source: BSE
