Himatsingka Seide confirms ₹300 crore NCD issue at 11.50% coupon
- Himatsingka Seide approved ₹300 crore Series 1 Listed NCDs with a ₹250 crore green shoe option
- The unsecured debt carries a fixed coupon of 11.50% per annum, payable quarterly
- Tenure is set at 42 months, with principal repayment split across three instalments
- Instruments will be issued via private placement and listed on the BSE
*this image is generated using AI for illustrative purposes only.
Himatsingka Seide confirmed the terms for its Series 1 Listed Non-Convertible Debentures (NCDs) on August 25, 2026. The company’s Securities Committee approved the issuance of ₹300 crore in senior, unsecured debt instruments via private placement.
The issuance includes an oversubscription option, or green shoe, of up to ₹250 crore, bringing the potential total size of the issue to ₹550 crore. The NCDs will be listed on the Bombay Stock Exchange (BSE).
Key Terms of Issue
The Securities Committee meeting, held from 3:00 pm to 3:30 pm, finalized the structure of the debt offering in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The terms are outlined below:
| Particulars | Details |
|---|---|
| Issue Size | ₹300 crore (base) with ₹250 crore green shoe option |
| Coupon Rate | 11.50% p.a., payable quarterly |
| Tenure | 42 months from deemed date of allotment |
| Security Type | Senior, unsecured, listed, redeemable NCDs |
| Listing Venue | BSE Limited |
| Repayment Schedule | Principal repaid in three instalments at end of 30, 36, and 42 months |
| Default Penalty | 2% additional interest for delays exceeding three months |
The principal repayment is structured across three distinct milestones rather than a bullet repayment at maturity. Investors will receive the principal back at the end of the 30th, 36th, and 42nd months respectively. Interest payments will continue on a quarterly basis throughout the tenure.
What the Numbers Show
The coupon rate of 11.50% positions the instrument within the prevailing corporate debt yield spectrum for unsecured obligations of this tenure. The staggered repayment schedule reduces the company’s liquidity pressure at the final maturity date compared to a lump-sum redemption, spreading the cash outflow over the last 12 months of the instrument’s life. The absence of security charges indicates the debt relies solely on the company’s creditworthiness and operational cash flows for servicing.
Historical Stock Returns for Himatsingka Seide
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.15% | +2.71% | -10.07% | -28.38% | -42.06% | -70.71% |
How will the staggered principal repayment schedule impact Himatsingka Seide's liquidity management and debt servicing capabilities over the next 3.5 years?
What strategic initiatives or capital expenditures is Himatsingka Seide likely to fund with the proceeds from this ₹300 crore unsecured debt issuance?
Does the 11.50% coupon rate reflect a widening credit spread for the textile sector, and how does it compare to recent offerings by peer companies?
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