Varroc Engineering Limited has successfully completed the full redemption of its ₹250 crore Non-Convertible Debentures (NCDs). The debt instruments, originally issued in September 2023, were fully settled on March 6, 2026, by exercising the company’s call option. Throughout the tenure of the debentures, the company maintained an asset cover exceeding the mandatory 1.10 times requirement, ensuring the security of the obligation until the final date of redemption.
Successful Debt Redemption
Varroc Engineering Limited has announced the completion of the full redemption process for its senior, secured Non-Convertible Debentures. The company finalized this repayment on March 6, 2026, by utilizing the call option available on the instruments. This move effectively clears the ₹250 crore debt facility that was originally established on September 7, 2023.
Security and Asset Coverage
Throughout the life of the debentures, the company adhered to strict security protocols. The NCDs were backed by an exclusive charge on specific identified movable fixed assets. Maintaining investor confidence, the asset cover—which accounts for both the principal and accrued interest obligations—consistently remained above the mandated 1.10 times coverage ratio as specified in the original Debenture Trust Deed.
Impact on Capital Structure
By opting to redeem these debentures, Varroc Engineering has successfully fulfilled its obligations toward its debenture holders ahead of the maturity schedule. This redemption reflects the company’s commitment to maintaining a robust balance sheet and active debt management, ensuring that all financial liabilities are backed by sufficient asset coverage until the final settlement date.
Source: BSE
