Himatsingka Seide Limited has completed the allotment of Tranche 3 Series E Non-Convertible Debentures (NCDs) aggregating ₹12.50 crore, securing debt capital through a private placement to eligible investors. The allotment, finalized on July 31, 2026, involves the issuance of 250 debentures, each with a face value of ₹5,00,000, issued at par. This financing instrument carries a coupon rate of 11.50% per annum, payable quarterly, and is structured as an unlisted, senior, secured, unrated, redeemable, taxable, and transferable security.

The transaction was executed in compliance with Regulation 30 read with Part-A of Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, for disclosure requirements. The Securities Committee of the Board of Directors approved the allotment, which follows a previous intimation dated July 10, 2026.

Key Terms of the Issue

The Tranche 3 Series E Debentures are designed with a specific repayment schedule and security structure to mitigate investor risk. The principal amount will not be repaid in a single lump sum but rather in three distinct installments. Interest payments remain consistent throughout the tenure.

Principal repayment is scheduled at the end of 30 months, 36 months, and 42 months respectively. In the event of a delay in payment of interest or principal for more than three months from the due date, a penalty of 2% applies. There are no special rights, interests, or privileges attached to these instruments beyond the standard terms.

Security and Collateral Structure

The debentures are backed by substantial collateral, providing multiple layers of security for investors. The primary security includes a first pari passu charge by way of a registered/equitable mortgage and a deed of hypothecation over the entire immovable and moveable fixed assets of Himatsingka Seide Limited. These assets encompass both present and future holdings located at the company’s manufacturing plants in Hassan and Doddaballapur, Karnataka.

Additional security measures include a negative lien over land admeasuring 4.85 acres located at Sy No. 25, 17/1, 17/2 & 23 at the Hassan manufacturing facility. Furthermore, an exclusive charge has been created over the Subscription Escrow Account. The security package is reinforced by a Demand Promissory Note and a Letter of Continuity. No letters or comments regarding non-payment of interest or principal were recorded in relation to this issue.

What the Numbers Show

The issuance of unrated, secured debt at an 11.50% coupon rate reflects the company’s strategy to raise capital without diluting equity or relying on public market listings for these specific instruments. The structured repayment plan—splitting principal repayment across three milestones (30, 36, and 42 months)—reduces the immediate liquidity burden at maturity compared to a bullet repayment structure. By leveraging fixed assets at its key Karnataka manufacturing hubs as collateral, Himatsingka Seide Limited has been able to secure funding while maintaining its operational asset base, indicating a reliance on tangible asset strength rather than credit ratings to attract eligible private investors.

Himatsingka Seide Limited has completed the private placement of Tranche 2 Series E Non-Convertible Debentures (NCDs), aggregating to ₹12.75 crore. The allotment, finalized by the Securities Committee of the Board of Directors on July 28, 2026, involves the issuance of 255 debentures, each with a face value of ₹5,00,000. This financing move adds to the company’s debt capital structure, providing liquidity secured against specific manufacturing assets.

The issuance was made under Regulation 30 read with Part-A of Schedule III and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details were submitted to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) as required under SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The debentures are unlisted, senior, secured, unrated, redeemable, taxable, and transferable.

Key Terms of the Issue

The Tranche 2 Series E NCDs carry a coupon rate of 11.50% per annum, payable on a quarterly basis. The instruments have a tenure of 42 months from the deemed date of allotment, with a maturity date set for January 28, 2030. Unlike bullet repayment structures, the principal amount will be repaid in three distinct installments.

Repayment Schedule and Security

The principal repayment is structured across three milestones: at the end of 30 months, 36 months, and 42 months from the allotment date. Interest payments continue quarterly throughout the tenure. In the event of a delay in payment of interest or principal for more than three months from the due date, a penalty interest of 2% applies.

The debentures are secured by multiple charges over the company’s assets:

• A first pari passu charge via registered/equitable mortgage and hypothecation over all immovable and movable fixed assets at manufacturing plants in Hassan and Doddaballapur, Karnataka.
• A negative lien over land measuring 4.85 acres located at Sy No. 25, 17/1, 17/2 & 23 at the Hassan facility.
• An exclusive charge over the Subscription Escrow Account.
• Demand Promissory Note and Letter of Continuity.

What the Numbers Show

The decision to structure the principal repayment in three staggered installments rather than a single bullet payment suggests a focus on managing near-term cash flow obligations while maintaining longer-term leverage. By securing the debt against specific plant assets in Karnataka, Himatsingka Seide isolates this liability from its broader corporate balance sheet, offering investors a defined security interest without diluting equity or affecting existing credit ratings, as the instruments remain unrated.