Varroc Engineering Limited (VEL) has provided comprehensive updates regarding its Non-Convertible Debentures (NCDs) to the Bombay Stock Exchange (BSE). The company has submitted regulatory disclosures under SEBI Regulation 54(2) regarding security details as on December 31, 2025, while also clarifying the redemption structure of its existing NCDs.

Latest NCD Security Disclosure

In compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Varroc Engineering has disclosed the security details of its NCDs as on December 31, 2025. The disclosure was submitted to BSE on January 2, 2026, by Company Secretary & Compliance Officer Anil Ghatiya.

NCD Redemption Structure Clarification

VEL has also provided clarification to BSE regarding the redemption process of its NCDs, emphasizing a partial face value reduction approach rather than early full redemption. The company confirmed that redemption occurs through partial reductions in face value per NCD on scheduled record dates, as outlined in the original issuance terms.

Security and Compliance Framework

The NCDs are secured by way of exclusive charge on specific identified movable fixed assets of the company. The asset cover with respect to these NCDs, including interest obligations, maintains a ratio higher than the requirement of 1.10 times as specified in the Debenture Trust Deed. This provides additional security to NCD holders and demonstrates the company's commitment to maintaining adequate collateral coverage.

Implications for Stakeholders

These disclosures ensure transparency in Varroc Engineering's debt management strategy and regulatory compliance. The structured redemption approach allows for gradual debt repayment while maintaining the total number of NCDs constant at 25,000 units. Interest payments continue on the outstanding face value as per the original schedule, providing clarity to investors regarding their expected returns until the final maturity date in 2028.

Varroc Engineering Limited has successfully fulfilled its debt obligations by paying ₹19.64 crores in interest and principal amounts on its Non-Convertible Securities during the quarter ended December 31, 2025. The payment demonstrates the company's commitment to maintaining its debt service obligations in accordance with regulatory requirements.

Payment Details for Q3FY26

The automotive components manufacturer made the payment ahead of the due date, showcasing strong financial discipline. The company paid the obligations on December 5, 2025, two days before the scheduled due date of December 7, 2025.

Non-Convertible Securities Overview

The Non-Convertible Securities carry an 8.60% per annum coupon rate with quarterly payment frequency. The securities were originally issued on September 7, 2023, with a maturity date of September 7, 2028, providing a five-year tenure for the debt instrument.

Regulatory Compliance

Varroc Engineering Limited has filed this payment confirmation under Regulation 57 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was submitted to both NSE and BSE, ensuring transparency in debt servicing activities. Company Secretary and Compliance Officer Anil Ghatiya signed the regulatory filing, confirming the company's adherence to listing obligations and maintaining investor confidence through timely debt service.