Himatsingka Seide Limited's Board of Directors has officially approved the issuance of Series B Non-Convertible Debentures worth ₹100.00 crores through private placement. The board meeting held on December 12, 2025, formalized the company's debt fundraising plans under Regulation 30 of SEBI Listing Regulations.

Board Meeting Details and Regulatory Compliance

The board meeting commenced at 6:00 PM and concluded at 7:20 PM on December 12, 2025. The company has communicated the outcome to both BSE Limited and National Stock Exchange of India Limited, fulfilling disclosure requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

NCD Structure and Terms

The approved issuance comprises 1,000 Series B NCDs, each carrying a face value of ₹10.00 lakhs, totaling ₹100.00 crores. These INR-denominated debentures will be unrated, unlisted, and transferable, issued at par value through private placement to eligible investors.

Security and Collateral Framework

The NCDs are backed by comprehensive security arrangements to protect investor interests. The company has created multiple layers of security including first pari passu charge on moveable and immoveable fixed assets at Hassan and Doddaballapur plants, providing 1.25x coverage on book value and 1.75x coverage based on fair market value.

Redemption and Payment Structure

The debentures feature a structured redemption schedule with an initial moratorium period followed by quarterly installments. The repayment structure includes a 12-month moratorium followed by 10 quarterly installments, with applicable redemption premium as required. Default penalty is set at 2% for delays exceeding three months from due dates.

Himatsingka Seide Limited , a prominent player in the textile industry, has reported a 9.3% decline in consolidated revenue for the second quarter. The company's financial performance has been significantly impacted by ongoing US tariffs, prompting strategic shifts in its market focus and potential fundraising plans.

Key Financial Highlights

Impact of US Tariffs

The primary reason for the revenue decline is attributed to the ongoing 50% US tariffs, which have significantly affected Himatsingka Seide's revenue streams from the US markets. Despite these challenges, the company reports that the offtake of goods has remained largely stable, with only marginal impacts on the order book and shipments.

Strategic Response

To mitigate the impact of US tariffs, Himatsingka Seide is implementing several strategic initiatives:

1. Diversification of Revenue Streams: The company aims to reduce its US exposure to below 50% over the next couple of years.
2. Global Expansion: Himatsingka Seide is focusing on enhancing revenue from non-US jurisdictions, currently servicing 38 different markets.
3. Domestic Market Growth: The company's India business continues to show consistent year-on-year growth, reinforcing its domestic presence.
4. Brand Portfolio Expansion: In India, Himatsingka Seide operates with three brands - Himeya, Atmosphere, and Liv - catering to various price points and demographics.

Operational Performance

Financial Stability and Future Plans

• Net Debt: ₹2,436.00 crores in Q2, down from ₹2,680.00 crores in the same period last year.
• Equity Fundraising: The company is exploring options to raise up to ₹500.00 crores for balance sheet deleveraging, with plans to finalize within the next 12 months.

Management Commentary

Shrikant Himatsingka, Executive Vice-Chairman and Managing Director, stated, "We are focused on enhancing our global presence into non-US jurisdictions... Our India business continues to demonstrate consistent year-on-year growth, reinforcing the strength of our domestic presence and brand portfolio."

Outlook

Himatsingka Seide remains optimistic about future growth, particularly once the tariff issues are resolved. The company is concentrating on maximizing its installed capacities and expects demand from India and other non-US jurisdictions to continue showing encouraging trends.

As the textile industry navigates through these challenging times, Himatsingka Seide's strategic initiatives to diversify its market presence and strengthen its financial position could potentially position the company for more stable growth in the coming quarters.