Patel Engineering Ltd , a prominent infrastructure and construction company, has taken a significant step to bolster its financial position. The company's Allotment Committee has given the green light for the issuance of non-convertible debentures (NCDs) worth up to INR 100 crores through private placement.

Debenture Details

The NCD issue comprises two parts:

1. An initial issuance of 5,000 debentures with a face value of INR 1 lakh each, totaling INR 50 crores.
2. A green shoe option for an additional 5,000 debentures, also worth INR 50 crores.

These senior, secured, rated, listed, and transferable non-convertible debentures come with the following key features:

• Tenure: 36 months
• Coupon Rate: 10.25% per annum
• Interest Payment: Monthly
• Principal Repayment Schedule:
  • 30% after 24 months
  • 30% after 30 months
  • 40% after 36 months

Security and Listing

The debentures will be secured by a first-ranking exclusive charge on identified land parcels owned by the company. This security arrangement aims to provide additional comfort to investors. The NCDs are set to be listed on the National Stock Exchange of India Limited, enhancing their liquidity and tradability.

Significance of the Move

This strategic financial move by Patel Engineering could serve multiple purposes:

1. Capital Infusion: The INR 100 crore raised through this NCD issue will provide the company with additional working capital or funds for ongoing projects.
2. Debt Restructuring: The company may use these funds to refinance existing debt, potentially at more favorable terms.
3. Project Financing: The capital raised could be allocated to specific infrastructure projects, supporting the company's core business activities.

Investor Perspective

For potential investors, these NCDs offer an attractive proposition:

• A competitive interest rate of 10.25% in the current market scenario
• Monthly interest payments, providing regular income
• The security of being backed by tangible assets (land parcels)
• The liquidity advantage of being listed on a major stock exchange

Conclusion

Patel Engineering's decision to issue these non-convertible debentures demonstrates the company's proactive approach to financial management and its ability to tap into debt markets for capital. As the infrastructure sector continues to play a crucial role in India's economic development, such financial maneuvers by established players like Patel Engineering are likely to be closely watched by investors and industry observers alike.

Investors and stakeholders are advised to review the detailed terms and conditions of the issue as provided in the company's official communications and regulatory filings before making any investment decisions.

Patel Engineering has announced an important upcoming meeting that could shape its financial strategy. The company's Allotment Committee is set to convene on July 25, 2025, to finalize the terms and conditions for a proposed debenture issuance.

Key Details of the Announcement

• Meeting Date: Friday, July 25, 2025
• Purpose: To decide matters relating to the issuance of Debentures
• Scope: Finalization and approval of detailed terms, conditions, and the number of securities to be issued

This meeting follows the approval granted by the company's Board of Directors on July 3, 2025, for the debenture issuance. The upcoming Allotment Committee meeting is a crucial step in the process, as it will determine the specifics of the offering.

Regulatory Compliance

The announcement was made in compliance with Regulations 29(1)(d) and 50(1)(d) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. This adherence to regulatory requirements underscores Patel Engineering's commitment to transparency in its financial operations.

Potential Implications

While the exact details of the debenture issuance are yet to be determined, this move could have significant implications for Patel Engineering's financial structure and future growth plans. Debentures are often used by companies to raise capital for various purposes, including expansion, debt refinancing, or funding ongoing operations.

Investors and market watchers will be keenly awaiting the outcome of this meeting, as the terms and size of the debenture issue could provide insights into the company's financial needs and strategic direction.

Patel Engineering, with its registered office in Mumbai, is known for its operations in the engineering and construction sector. As this financial decision unfolds, it may impact the company's position in the industry and its ability to undertake new projects or initiatives.

The company has urged stakeholders to take note of this development. Further details about the debenture issuance are expected to be disclosed following the Allotment Committee meeting on July 25, 2025.