Clean Max Enviro gets BSE nod to convert ₹400 cr NCDs to secured
Clean Max Enviro Energy Solutions Limited secured BSE approval to convert its ₹400 crore NCDs from unsecured to secured status. The amendment increases the security cover ratio to 1:1 and includes perpetual debt as collateral, enhancing investor protection under SEBI regulations.
*this image is generated using AI for illustrative purposes only.
Clean Max Enviro Energy Solutions has received in-principle approval from BSE Limited to amend the terms of its outstanding non-convertible debentures (NCDs). The exchange granted the approval on August 14, 2026, allowing the company to reclassify its ₹400 crore debt issuance from unsecured to secured instruments.
The modification follows an application submitted by the company on August 7, 2026, under Regulation 59(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors had previously authorized the amendments to the Debenture Trust Deed dated October 27, 2025.
Key Changes in Debenture Terms
The primary alteration involves the security status of the debentures. Previously described as listed, rated, unsecured, redeemable, and non-convertible, the instruments will now be classified as secured. This change requires the creation of a first-ranking charge on specific assets, including inter-corporate borrowings and perpetual debt.
| Parameter | Existing Terms | Revised Terms |
|---|---|---|
| Security Status | Unsecured | Secured |
| Security Cover Ratio | 0.7 | 1:1 |
| Collateral Assets | Inter-corporate borrowings receivables | Inter-corporate borrowings and perpetual debt |
The revised terms also increase the required Security Cover Ratio from 0.7 to 1:1. Under the new structure, the Debenture Trustee will hold a first-ranking charge over the issuer’s receivables from inter-corporate borrowings and perpetual debt. The company must ensure that any release of security interest does not cause the ratio to fall below this threshold.
Regulatory Conditions
BSE Limited’s approval is valid for three months from the date of issue. The exchange will effectuate the modifications only after the company fulfills specific conditions:
- Submission of confirmation letters from National Securities Depository Ltd and/or Central Depositories Services (India) Ltd regarding the structural changes.
- Provision of a certified true copy of the in-principle approval from the National Stock Exchange, if applicable.
- Compliance with SEBI LODR Regulations, the Companies Act, 2013, and other applicable laws.
The exchange reserved the right to withdraw the approval if submitted information is found to be incomplete, incorrect, or misleading.
What the Numbers Show
The shift from an unsecured to a secured structure with a higher collateral requirement signals a strengthening of creditor protections. By raising the Security Cover Ratio from 0.7 to 1:1 and expanding the scope of pledged assets to include perpetual debt, the company is providing debenture holders with greater assurance against default risks.
Historical Stock Returns for Clean Max Enviro Energy Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.51% | -8.05% | -4.38% | +43.92% | +43.92% | +43.92% |
How might the reclassification of Clean Max's NCDs from unsecured to secured impact its credit rating and future borrowing costs?
What are the potential liquidity implications for Clean Max given that its inter-corporate borrowings and perpetual debt are now pledged as collateral?
Could this move signal broader financial stress, or is it a strategic restructuring to improve investor confidence ahead of upcoming debt maturities?
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