Magnum Ventures Limited has allotted 5,000 listed, secured, redeemable, non-convertible debentures (NCDs) aggregating ₹50 crore on a private placement basis. The allotment, finalized on June 16, 2026, carries a coupon rate of 18% per annum payable monthly. The funds raised will address the working capital requirements of the company. The NCDs have a tenure of 4 years, 9 months, and 15 days, maturing on March 31, 2031, and are proposed to be listed on the National Stock Exchange of India Limited (NSE) and BSE Limited.

Neo Special Credit Opportunities Fund, managed by Neo Asset Management Pvt Ltd, subscribed to the issuance. The security structure includes a pari passu charge over fixed and intangible assets of the Paper Division, along with current assets of the same division. Additionally, the company must maintain a one-month debt service reserve in the form of a fixed deposit. The security package is cross-collateralized with existing NCDs issued by the company.

Security and Guarantee Details

The comprehensive security package involves personal guarantees from Mr. Pradeep Kumar Jain, Mr. Abhay Jain, and Mr. Parv Jain. Furthermore, Mr. Parv Jain has pledged 83,24,255 equity shares to secure the debt. In the event of a default, the company is liable to pay default interest at 1% per month.

The redemption of the debentures is scheduled in 13 installments starting from March 31, 2027, and concluding on March 31, 2031. The disclosure was made to the stock exchanges in compliance with Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Redemption Schedule

Magnum Ventures Limited reported a consolidated net loss of ₹1,137.86 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹949.58 lakh in the previous year. Total income from operations for the year rose to ₹46,679.59 lakh from ₹39,725.55 lakh in FY25. The company's Board of Directors approved the audited standalone and consolidated financial results at a meeting held on May 27, 2026.

Financial Performance

For the quarter ended March 31, 2026, the company reported a consolidated net profit of ₹532.01 lakh. Total income from operations for the quarter stood at ₹12,969.42 lakh. On a standalone basis, the company reported a net loss of ₹1,137.39 lakh for the full year FY26, compared to a net profit of ₹949.58 lakh in the previous year. The standalone net profit for the quarter was ₹532.49 lakh.

Corporate Approvals

The Board approved the issuance of up to 5,000 listed, rated, secured, redeemable, non-convertible debentures (NCDs) of face value ₹1,00,000 each, aggregating up to ₹50 crore. The NCDs carry a coupon rate of 18% per annum and are proposed to be listed on the National Stock Exchange of India Limited (NSE) and BSE Limited. The issuance is on a private placement basis to Neo Special Credit Opportunities Fund, with a maturity date of March 31, 2031.

Auditor's Observations

The statutory auditors noted that the balance of debtors, creditors, and advances as at March 31, 2026, is subject to confirmation and reconciliation. Additionally, the company made deposits of ₹300 lakh with Bank of Baroda to cover expenses for the withdrawal of cases filed by the bank against the company. The auditors also highlighted a penalty of ₹12 lakh imposed by SEBI, which has been deposited and is currently under appeal with the Securities Appellate Tribunal, adjourned to July 7, 2026.