Emerald Leisures completes ₹65 cr first tranche of NCD issue

Emerald Leisures Limited has completed the full allotment of the first tranche of its Non-Convertible Debenture (NCD) issue, raising ₹65 crore. The Board of Directors approved the final allotment of 100 NCDs on August 11, 2026, bringing the total for the first tranche to 650 debentures. This follows an initial allotment of 550 NCDs aggregating to ₹55 crore approved on August 4, 2026.

The issuance forms part of a larger private placement program totaling ₹105 crore across three tranches. The entire issue comprises 1,050 NCDs, with each debenture having a face value of ₹10,00,000. While the first tranche is now fully allotted, the company still has Tranche 2 (150 NCDs, ₹15 crore) and Tranche 3 (250 NCDs, ₹25 crore) pending allotment under the broader framework.

Key Terms of the Issue

The NCDs are secured, unlisted, redeemable instruments with a tenure of 36 months. Investors will receive a coupon interest of 10% per annum, payable monthly. Additionally, the company has offered a redemption premium of 6.0% per annum per quarter, compounded quarterly, which is payable at the time of principal repayments.

Parameter	Details
Total Issue Size	₹105 crore (1,050 NCDs)
Tranche 1 Allotted	₹65 crore (650 NCDs)
Coupon Rate	10% p.a. (monthly)
Redemption Premium	6.0% p.a.p.q. compounded quarterly
Tenure	36 months
Listing Status	Unlisted
Security	Secured via mortgage/pledge of assets

Repayment and Security Structure

The repayment structure for Tranche 1 involves two installments. The first repayment of 50% of the principal is due at Month 18, while the remaining 50% is due at Month 36. The debentures are secured by a mortgage, hypothecation, or pledge of the company’s assets in favor of the Debenture Trustee, as per the security documents.

In the event of a default in payment of interest or principal for more than three months from the due date, the company is liable to pay default interest at 3% per annum over and above the relevant cash coupon on the overdue amounts. The redemption amounts are payable in accordance with the Deed of Trust and other transaction documents.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/CFDPoDP/CIR/2023/123 dated July 13, 2023. The Board meeting commenced at 02:00 P.M. and concluded at 02:20 P.M. on August 11, 2026. The company confirmed that there were no cancellations or terminations of the proposal and no special rights attached to the instruments beyond those specified.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.68%	+17.17%	+31.70%	+11.28%	-4.91%	+879.74%

Emerald Leisures Limited has approved the allotment of 550 secured, unlisted, unrated, redeemable non-convertible debentures (NCDs) aggregating to ₹55 crore on a private placement basis. The Board of Directors finalized the deal during its meeting held on Tuesday, August 4, 2026, at its registered office in Mumbai. This first tranche issuance carries a coupon rate of 10% per annum payable monthly and a tenure of 36 months, providing the leisure club operator with immediate capital deployment while retaining flexibility for future tranches under its larger ₹105 crore debt framework.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III thereto. The filing was signed by Kapil M Purohit, the Company Secretary and Compliance Officer, confirming that the Board meeting commenced at 1:00 PM and concluded at 1:45 PM on August 4, 2026.

Allotment Details

The company had previously authorized the issuance of up to 1,050 NCDs with a face value of ₹10,00,000 each, totaling ₹105 crore. The recent approval covers the first tranche, for which subscription money of ₹55 crore was received. The remaining balance of the first tranche and subsequent tranches will be considered for allotment upon receipt of further subscription monies.

Instrument Detail	Specification
Total Issue Size	₹105 crore (1,050 NCDs)
Tranche 1 Allotted	₹55 crore (550 NCDs)
Face Value	₹10,00,000 per NCD
Coupon Rate	10% p.a. payable monthly
Tenure	36 months
Redemption Premium	6.0% p.a. compounded quarterly

Security and Repayment Structure

The NCDs are secured by a mortgage, hypothecation, or pledge of the company’s assets in favor of the Debenture Trustee. The repayment schedule for Tranche 1 involves two equal installments: 50% of the principal is due at Month 18, and the remaining 50% is due at Month 36. Interest payments are scheduled on a monthly basis, while the redemption premium is payable at the time of principal repayments.

In the event of a default, where payment of interest or principal is delayed by more than three months from the due date, the company is liable to pay default interest at 3% per annum over and above the relevant cash coupon. This penalty applies from the due date until the overdue amounts are settled.

What the Numbers Show

The partial allotment of ₹55 crore against a total authorized size of ₹105 crore indicates a phased approach to debt raising. By securing half of the initial tranche amount immediately, Emerald Leisures ensures liquidity availability while testing market appetite for the remaining ₹50 crore of the first tranche and subsequent issues. The 10% coupon rate reflects the cost of capital for this secured debt instrument, which is fixed for the 36-month duration, insulating the company from immediate interest rate volatility but committing it to regular monthly outflows.