Deccan Cements Limited has approved the allotment of debt instruments worth ₹660 crore to raise capital through compulsorily convertible debentures (CCDs) and non-convertible debentures (NCDs). The Board of Directors sanctioned the issuance on June 25, 2026, enabling the company to secure funds via unlisted, unrated instruments across three distinct tranches.

The allotment comprises 14,40,559 unsecured CCDs with a face value of ₹715 each, aggregating to ₹102,99,99,685. Additionally, the company allotted 15,000 secured, senior, redeemable Series A NCDs and 40,700 secured, junior, redeemable Series B NCDs. Both Series A and Series B NCDs carry a face value of ₹1,00,000 each, with total aggregations of ₹150,00,00,000 and ₹407,00,00,000 respectively.

Breakdown of Allotment

The Board meeting commenced at 17:45 IST and concluded at 18:15 IST. This disclosure follows the initial announcement made on May 14, 2026, under Regulation 30 of the SEBI (LODR) Regulations, 2015. The regulatory filing references the SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026, dated July 11, 2023, and updated up to January 30, 2026.

Deccan Cements Limited received shareholder approval to raise ₹103 crore through the issuance of Compulsorily Convertible Debentures (CCDs) to repay existing term loans. The special resolution passed with 99.9977% of votes in favour during the postal ballot process concluded on June 13, 2026. The issuance will allow the company to address its funding requirements for liabilities owed to State Bank of India.

The Board of Directors sought consent for the issuance of up to 14,40,559 CCDs on a preferential basis. The remote e-voting period commenced on May 15, 2026, and concluded on June 13, 2026, with the voting rights reckoned as on May 8, 2026. Mr. Vikas Sirohiya of M/s. P S Rao & Associates served as the scrutinizer for the process.

The CCDs will be issued at a price of ₹715 each, carrying a coupon rate of 6% per annum payable monthly. These instruments are unsecured and will convert into equity shares within 18 months from the date of allotment at a 1:1 ratio. The conversion price of ₹715 includes a premium of ₹710 per equity share of face value ₹5.

Funds raised from the issuance, totaling ₹1,02,99,99,685, will be utilized to repay a term loan of ₹330.91 crore availed from State Bank of India, IFB, Somajiguda, Hyderabad. The loan carries an interest rate of 8.5% per annum. The company plans to utilize the proceeds on or before July 31, 2026.

The proposed allotment will result in the allottees holding 9.33% of the post-preferential issue capital, while the promoters' stake will dilute from 56.25% to 51.00%. The company confirmed that the issuance will not result in any change in control. CARE Ratings Limited has been appointed as the Monitoring Agency to oversee the utilization of proceeds.

Voting Breakdown