Zuari Agro Chemicals Pledges 1.60% Stake in Mangalore Chemicals for Rs 125 Crore Debenture Issuance

1 min read Updated on 30 Oct 2025, 08:28 PM

Reviewed by

Radhika SahaniScanX News Team

Overview

Zuari Agro Chemicals Limited has created a new share encumbrance, pledging 1.60% of its stake in Mangalore Chemicals & Fertilizers to secure a Rs 125 crore Non-Convertible Debenture (NCD) issuance. The encumbrance, created on February 15, 2023, is in favor of Vistra ITCL (India) Limited as the debenture trustee. The NCDs are secured, redeemable, unrated, and unlisted, with a face value of Rs 10 lakh each. The primary investors include Centrum Credit Opportunities Trust. Proceeds will be used for debt repayment, long-term working capital, and transaction costs. Zuari Agro Chemicals holds a 54.03% stake in Mangalore Chemicals & Fertilizers, totaling 6.40 crore shares.

*this image is generated using AI for illustrative purposes only.

Zuari Agro Chemicals Limited has recently undertaken a significant corporate action, creating a new share encumbrance to secure a debenture issuance. Here are the key details of this development:

New Encumbrance Details

Aspect	Details
Encumbrance Number	10
Date of Creation	February 15, 2023
Shares Pledged	1.60% of Mangalore Chemicals & Fertilizers
Pledged in Favor of	Vistra ITCL (India) Limited (Debenture Trustee)

Debenture Issuance Specifics

Feature	Description
Instrument	Non-Convertible Debentures (NCDs)
Total Value	Rs 125.00 crores
Face Value per NCD	Rs 10.00 lakh
Nature	Secured, Redeemable, Unrated, Unlisted
Primary Investors	Centrum Credit Opportunities Trust and others

Purpose of Debenture Proceeds

The funds raised through this debenture issuance are intended for:

Repayment of existing debt
Long-term working capital purposes
Transaction-related costs

Zuari Agro's Stake in Mangalore Chemicals

Zuari Agro Chemicals holds a significant position in Mangalore Chemicals & Fertilizers Limited:

Total shareholding: 6.40 crore shares
Percentage stake: 54.03%

It's worth noting that Zuari Agro Chemicals has multiple existing encumbrances on its shareholding in Mangalore Chemicals & Fertilizers, which have been created for various financing arrangements.

This latest encumbrance adds to the company's existing financial commitments and reflects its ongoing efforts to manage its capital structure and liquidity needs. The move to issue debentures secured by a portion of its shareholding in Mangalore Chemicals & Fertilizers suggests that Zuari Agro Chemicals is leveraging its assets to meet its financial obligations and operational requirements.

Stake Increase Details

Aspect	Details
Investor	Dolly Khanna
Company	Mangalore Chemicals & Fertilizers
Stake Increase	0.66% - 0.70%

The discrepancy in the reported stake increase (0.66% vs 0.70%) could be due to different reporting periods or rounding methods. Investors and market watchers may want to keep an eye on official filings for the most accurate figure.

Implications

This move by Dolly Khanna, known for her strategic investments, may attract attention from other investors and market analysts. However, it's important to note that individual investment decisions should not be based solely on the actions of other investors, no matter how prominent.

Mangalore Chemicals & Fertilizers, now with an increased stake from a notable investor, might see increased scrutiny in the coming days. Shareholders and potential investors may want to closely monitor the company's performance and any subsequent announcements for a comprehensive understanding of this development's impact.