Varroc engineering Limited has announced the successful issuance and allotment of commercial paper worth Rs 50 crores to Kotak Mahindra Bank Limited. The automotive components manufacturer informed the stock exchanges about this debt instrument issuance on January 28, 2026, in compliance with Regulation 30 of SEBI Listing Regulations.

Commercial Paper Details

The commercial paper issuance carries specific terms and conditions structured for short-term financing requirements. The instrument features a discount rate of 7.20% with a tenure of 30 days, making it a short-term debt security for the company's working capital needs.

Instrument Structure

The commercial paper has been structured with 1000 units, each carrying a face value of Rs 5,00,000. The issue price has been set at Rs 4,97,058.5 per security, reflecting the discount rate applied to the face value. ICICI Bank Limited has been appointed as the Issuing and Paying Agent (IPA) for this commercial paper issuance.

Listing Process

Varroc Engineering Limited has indicated its intention to list the commercial paper on the National Stock Exchange of India Limited. The company is currently awaiting listing approval from the exchange. The commercial paper is proposed to be listed, which would provide additional liquidity options for the instrument.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 and other applicable regulations of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The intimation was signed by Anil Ghatiya, Company Secretary and Compliance Officer, ensuring proper corporate governance protocols were followed for this debt issuance.

Varroc Engineering Limited has provided detailed clarification to BSE Limited regarding the partial redemption mechanism of its Non-Convertible Debentures (NCDs), responding to a query raised on January 27, 2026. The clarification addresses the redemption process for NCDs with ISIN INE665L07040 and Scrip Code 975062.

Partial Redemption Mechanism

The company confirmed that the redemption of NCDs is executed through partial redemption of face value, in accordance with the Debenture Trust Deed (DTD) and General Information Document (GID). This method ensures that the total number of NCDs remains constant while reducing the face value of each debenture upon redemption.

Current NCD Status

The following table presents the current status of the NCDs, reflecting the last part-redemption that was due on December 7, 2025, and paid on December 5, 2025:

Redemption Process Details

The company emphasized that the number of NCDs has remained unchanged at 25,000 units since the original allotment. Only the face value of each NCD is reduced upon redemption, which differentiates this approach from other redemption methods where the number of securities might be reduced.

Payment Schedule Compliance

Varroc Engineering confirmed that outstanding amounts, along with applicable interest, are being paid according to the scheduled terms agreed between the company and the Debenture Trustee/holder. The systematic approach ensures compliance with the original terms while maintaining transparency with stakeholders.

The response was signed by Anil Ghatiya, Company Secretary & Compliance Officer, on January 27, 2026, providing formal documentation of the redemption clarification to BSE Limited.