Apollo Tyres allots ₹500 crore NCDs at 7.81% coupon for 3-year tenure
- Apollo Tyres allotted ₹500 crore in Non-Convertible Debentures via private placement on September 30, 2026
- The three-year NCDs carry an annual coupon rate of 7.81% with bullet repayment at maturity
- Securities are secured, listed, and rated, backed by a first pari-passu charge on tangible movable fixed assets
*this image is generated using AI for illustrative purposes only.
Apollo Tyres allotted ₹500 crore in Non-Convertible Debentures (NCDs) on a private placement basis on September 30, 2026. The three-year instrument carries an annual coupon rate of 7.81% and will be redeemed through bullet repayment.
The allotment was approved by the Committee of Directors-NCDs during a meeting held on the same day. The debentures are secured, listed, rated, and redeemable, with the company maintaining a first pari-passu charge on its tangible movable fixed assets to back the issuance.
Instrument Details and Security Structure
The issuance comprises 50,000 NCDs with a face value of ₹1,00,000 each. These securities are listed on the National Stock Exchange of India Ltd. The maturity date is set for September 28, 2029, exactly three years after allotment.
Security cover requirements mandate a ratio of 1.25x on the book value basis. The charge excludes windmills purchased under deferred consideration payment plans and engineering materials acquired under parts management agreement schemes from creditors.
| Particulars | Details |
|---|---|
| Type of Securities | Secured, Listed, Rated, Redeemable NCDs |
| Issuance Method | Private Placement |
| Total Amount | ₹500 crore |
| Number of Units | 50,000 |
| Face Value | ₹1,00,000 per unit |
| Coupon Rate | 7.81% per annum |
| Payment Frequency | Annually |
| Date of Allotment | September 30, 2026 |
| Date of Maturity | September 28, 2029 |
| Redemption Mode | Bullet repayment |
Redemption and Default Provisions
The company specified that there is no premium or discount on either the issue price or the redemption value. Consequently, the effective yield for investors holding the debentures to maturity remains identical to the stated coupon rate of 7.81%. In the event of a delay in interest or principal payment exceeding three months from the due date, a penal interest of 1% per annum applies.
No special rights, interests, or privileges are attached to these instruments. The disclosure was filed under Regulation 30 read with Schedule III Part A (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
Historical Stock Returns for Apollo Tyres
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.50% | +0.53% | -8.75% | -1.88% | -13.07% | +80.11% |
How will the ₹500 crore debt raise impact Apollo Tyres' overall leverage ratio and credit rating outlook in the coming quarters?
What specific capital expenditure projects or working capital needs is this private placement intended to fund?
How does the 7.81% coupon rate compare to recent peer issuances in the Indian automotive component sector, and what does it signal about investor sentiment?
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