Emerald Leisures promoter pledges 25.5% stake for ₹105 crore NCDs
- Promoter Nikhil Vinod Mehta pledged 38,30,290 shares (25.50%) on September 1, 2026
- Pledge secures ₹105 crore in 10% secured unlisted unrated NCDs
- Encumbrance covers 82% of Mehta's total holding of 46,74,510 shares
- Security cover ratio stands at 1.31 against a collateral value of ₹137.89 crore
- Funds allocated for club expansion, debt repayment, and SRA expenses
*this image is generated using AI for illustrative purposes only.
Promoter Nikhil Vinod Mehta has pledged 38,30,290 equity shares in Emerald Leisures , representing 25.50% of the company’s total share capital. The encumbrance was created on September 1, 2026, to secure the issuance of secured unlisted non-convertible debentures (NCDs).
The pledge covers a significant portion of Mehta’s holding. He holds 46,74,510 shares in total, which constitutes 31.12% of the total share capital. The creation of this encumbrance means that approximately 82.00% of his personal stake is now pledged against the debt instrument.
What the Numbers Show
The pledge secures an amount of ₹105 crore raised through the issuance of 10% Secured Unlisted Unrated Non-Convertible Debentures. The value of the pledged shares on the date of the event was disclosed at ₹137.89 crore, resulting in a security cover ratio of 1.31. This indicates that the market value of the collateral exceeds the borrowed amount by approximately 31%, providing a buffer for the lenders.
Fund Utilization Plan
The proceeds from the NCD issuance are earmarked for specific corporate purposes and general expansion. The allocation of the ₹105 crore is structured as follows:
| Purpose | Amount (₹ crore) |
|---|---|
| Club Expansion | 25 |
| Repayment of existing debt from Aditya Birla Capital Limited | 20 |
| SRA related expenses | 30 |
| General Corporate Purpose | 25 |
| Transaction Expenses | 5 |
The debt instrument is secured by Beacon Trusteeship Limited, acting as the Debenture Trustee, with Lighthouse Canton Alternatives Asset Manager Private Limited serving as the lender. The agreement also involves Mr. Jaydeep Vinod Mehta alongside the promoter and the company.
Regulatory Disclosure
The disclosure was made pursuant to Regulation 31(1) read with Regulation 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that the encumbered shares represent more than 50% of the promoter’s shareholding and more than 20% of the total share capital of the listed entity.
Historical Stock Returns for Emerald Leisures
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.61% | +6.81% | +5.60% | +72.70% | +39.81% | +1,727.10% |
How might the 10% interest cost on the ₹105 crore NCD issuance impact Emerald Leisures' net profit margins in the upcoming fiscal quarters?
What are the specific risks associated with using 82% of the promoter's stake as collateral, particularly if the company's share price experiences significant volatility?
Will the ₹30 crore allocated for SRA-related expenses lead to any operational disruptions or delays in the company's core leisure services during the implementation phase?
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