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.

Himatsingka Seide has allotted 300 Tranche 1 Series E Non-Convertible Debentures (NCDs) aggregating ₹15 Cr on a private placement basis. The allotment, approved by the Securities Committee on July 13, 2026, carries a coupon rate of 11.50% per annum payable quarterly. This issuance is part of the company's broader debt management strategy, following a previous intimation regarding the re-classification of Series E NCDs aggregating ₹200 Cr.

The Tranche 1 Series E Debentures are senior, secured, unrated, unlisted, redeemable, and taxable instruments. Each debenture has a face value of ₹5,00,000 and is issued at par. The tenure is set at 42 months from the deemed date of allotment, with a specific maturity date of January 13, 2030. Principal repayment is structured in three instalments due at the end of 30 months, 36 months, and 42 months respectively.

Security for the debentures includes a first pari passu charge by way of a registered or equitable mortgage and a deed of hypothecation over the company's immovable and movable fixed assets. These assets are located at the manufacturing plants in Hassan and Doddaballapur, Karnataka. Additionally, a negative lien has been created over 4.85 acres of land at the Hassan facility, along with an exclusive charge over the Subscription Escrow Account.

The filing was submitted to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed there are no adverse letters or comments regarding payment or non-payment of interest or principal. A penalty of 2% will be levied in the event of a delay in payment exceeding three months from the due date.

Key Terms of Tranche 1 Series E NCDs

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE049A01027/6adb1839-5740-433d-bdd3-c5dbaf329614.pdf