Kerala ayurveda Limited's Board of Directors has successfully concluded its meeting held on March 25, 2026, and approved the issuance of Series A Non-Convertible Debentures worth Rs. 40 crores. The meeting, which was previously scheduled in accordance with Regulation 29(1)(d) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, commenced at 11:00 AM and concluded at 12:10 PM.

Board Approval Details

The board has approved the issuance of 4,000 Series "A" unlisted, secured and redeemable Non-Convertible Debentures on a private placement basis. Each debenture carries a face value of Rs. 1,00,000 and will be issued at par, aggregating to Rs. 40,00,00,000.

Financial Structure and Terms

The debentures will carry an interest rate of 12% per annum on reducing balance basis, with quarterly interest payments. The repayment structure includes a moratorium period of 24 months followed by 32 quarterly instalments for principal repayment.

Security and Compliance

The NCDs will be secured by a first charge on the company's industrial property, including factory land, building, plant and machinery located at Survey No. 264/1, 264/26, 264/27, Near St. Francis Assisi Church, Airport Road, Nedumbassery, Village Chengamanad, Taluka Aluva, District Ernakulam, Kerala. The borrowing falls within the limits approved by shareholders on August 22, 2025, under Section 180(1)(c) of the Companies Act, 2013.

Corporate Communication

George K T, Chief Financial Officer and Designated Officer for filing, communicated the outcome to the Bombay Stock Exchange through an official disclosure dated March 25, 2026. The information has been made available on the company's website at www.keralaayurveda.biz for stakeholder access. Kerala Ayurveda Limited operates as an ISO 9001:2015 certified company with its registered office in Athani, Nedumbassery, Ernakulam, Kerala, and corporate office in Bengaluru, Karnataka.

Kerala Ayurveda Limited has completed a significant preferential allotment of 9,34,887 fully paid-up equity shares on 21 March 2026, as approved by the Board of Directors. The allotment encompasses two strategic transactions aimed at debt restructuring and subsidiary consolidation.

Debt Conversion Transaction

The first component involves the allotment of 6,30,000 equity shares to Katra Holding Private Limited, a promoter group entity. These shares were issued at Rs. 327.99 per share, partially adjusting the existing unsecured loan of Rs. 20,66,33,700.

Subsidiary Acquisition

The second transaction involved issuing 3,04,887 equity shares to Mr. S.K. Arun Kumar and Mrs. Sangeetha Arunkumar for acquiring their combined 26% stake in Ayurvedagram Heritage Wellness Centre Private Limited. This share swap transaction was valued at Rs. 9,99,99,887.13.

Ayurvedagram Financial Performance

Ayurvedagram Heritage Wellness Centre Private Limited, incorporated on 27 January 2003, operates in the Ayurveda wellness industry. The entity has demonstrated consistent growth over the past three years.

As of 31 March 2025, Ayurvedagram reported a profit after tax of 2.8463 Crores and a net worth of 13.066 Crores.

Impact on Share Capital

Following the preferential allotment, Kerala Ayurveda's paid-up equity share capital increased substantially. The company's total share count expanded from 1,20,60,198 shares to 1,29,95,085 shares.

The allotment was conducted in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the equity shares will be listed on BSE Limited. As a result of this transaction, Ayurvedagram Heritage Wellness Centre Private Limited has become a wholly-owned subsidiary of Kerala Ayurveda Limited, subject to requisite listing and trading approvals from the stock exchange.