Himatsingka Seide has allotted 300 Tranche 1 Series D Non-Convertible Debentures (NCDs) aggregating ₹15 crore on a private placement basis to raise capital. The Securities Committee of the Board of Directors approved the issuance, with the allotment occurring on July 01, 2026. The NCDs carry a coupon rate of 11.50% per annum, payable quarterly, with a tenure of 42 months from the deemed date of allotment. The principal amount will be repaid in three installments at the end of 30 months, 36 months, and 42 months respectively. The issue is secured by a first pari passu charge on movable and immovable fixed assets at the Hassan and Doddaballapur plants, along with a negative lien on land and an exclusive charge over the Subscription Escrow Account. The filing was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Key Terms of Tranche 1 Series D NCDs

The Tranche 1 Series D issuance comprised 300 NCDs aggregating to ₹15 crore. The tranche has a face value of ₹5,00,000 each and is denominated in Indian Rupees. The date of allotment is July 01, 2026, with maturity on January 01, 2030. The securities are unlisted and unrated. In the event of a delay in payment of interest or principal for more than three months, a penalty of 2% will be applicable.

Security and Collateral Details

The security package includes a first pari passu charge by way of a registered or equitable mortgage and a deed of hypothecation over the entire immovable and movable fixed assets of the issuer, both present and future, located at the manufacturing plants in Hassan and Doddaballapur. Additionally, there is a negative lien over land admeasuring 4.85 acres located at Sy No. 25, 17/1, 17/2 & 23 at its manufacturing facility in Hassan. An exclusive charge over the Subscription Escrow Account, along with a Demand Promissory Note and Letter of Continuity, further secures the issue.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE049A01027/39d9dc832a4e442d.pdf

Himatsingka Seide has released the transcript of its earnings call for analysts and investors held on Friday, May 29, 2026. The company reported a consolidated total income of ₹721 crores for Q4FY26, a 5.8% increase compared to ₹681 crores in the same period last year. The disclosure was made under Part A of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

During the call, Mr. Shrikant Himatsingka, Executive Vice Chairman and Managing Director, noted that fiscal 2026 faced volatility due to U.S. tariff policies and geopolitical uncertainties, including the impact of the Middle East conflict on supply chains and outbound shipments. The company expects these overhangs to continue affecting shipments to certain jurisdictions in Q1 FY27. Capacity utilization levels for the quarter stood at 99% for spinning, 56% for sheeting, and 63% for the Terry Towel division.

Strategic Diversification and Financials

Management outlined a strategic transition to diversify its revenue mix beyond home textiles into yarn, fabric, and apparel solutions. These initiatives, leveraging existing infrastructure, are expected to materialize starting H2 FY27. The company aims to reduce concentration risk and address larger market pools. Mr. Himatsingka stated that home textiles would eventually constitute approximately half of the portfolio, with the new verticals comprising the balance, while maintaining an EBITDA margin profile of 18% to 22%.

Key Financial and Operational Metrics

The Board approved raising up to ₹850 crores through the issuance of senior secured redeemable non-convertible debentures on a private placement basis to balance debt tenors. The company targets reducing its net debt from approximately ₹2,550 crores to ₹2,000 crores within the next 12 months. The dividend for FY26 remains ₹0.25 per equity share with a trade-off value of ₹5 per equity share.