Lancor Holdings Limited has secured a significant legal victory in a case concerning its commercial property. The Supreme Court of India has ruled in favor of the company, upholding the sale deed for the property in question.

Key Highlights of the Ruling

• The Supreme Court sustained the filed sale deed registered in favor of Lancor Holdings.
• The ruling establishes Lancor Holdings' rightful ownership of the property.
• The company now has the freedom to lease or conduct transactions related to the property without restrictions.

Implications for Lancor Holdings

This court decision marks a pivotal moment for Lancor Holdings, as it removes previous limitations on the company's ability to utilize its commercial property asset. The ruling effectively grants Lancor Holdings full control over the property, allowing for potential revenue generation through leasing or other property-related transactions.

Next Steps

Lancor Holdings has stated that it is awaiting the full judgment to be uploaded on the Supreme Court website. Once received, the company plans to provide a comprehensive notification to the stock exchanges, detailing the salient parts of the judgment.

Regulatory Compliance

In adherence to regulatory requirements, Lancor Holdings has informed the National Stock Exchange of India Limited and BSE Limited about this development. The company has committed to disclosing further details as required by SEBI Circular No. SEBI/HO/CFD/CFDPoD1/P/CIR/2023/123 dated 13th July 2023 and Schedule III - Part A of Regulation 30 of the Listing Regulations, once the detailed order copy is received.

This favorable ruling could potentially impact Lancor Holdings' operations and financial outlook positively. Investors and market watchers may keep a close eye on how the company leverages this newly affirmed property right in its future business strategies.

Lancor Holdings , a prominent player in the real estate sector, has made a significant move in the debt market. The company's Board of Directors has given the green light for the issuance of Non-Convertible Debentures (NCDs) worth Rs 150 crore through private placement, marking a strategic financial decision for the firm.

Key Details of the NCD Issuance

The approved NCDs come with several notable features:

Issuance Strategy and Repayment

Lancor Holdings plans to issue these NCDs in tranches over time, allowing for flexibility in their capital raising process. The company has outlined a structured repayment plan, which includes a 6-month moratorium period followed by 8 equal quarterly installments.

Risk Mitigation and Investor Protection

To safeguard investors' interests, the company has incorporated certain protective measures:

1. The debentures are secured, providing a layer of protection for investors.
2. A penalty clause of 3% has been included for payment delays exceeding three months, encouraging timely repayments.

Redemption Strategy

Lancor Holdings has specified that the redemption of these NCDs will be facilitated through proceeds from asset sales. This approach aligns the company's debt repayment strategy with its asset management plans.

Regulatory Compliance

The company has meticulously adhered to regulatory requirements, providing detailed disclosures as mandated by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the recent SEBI circular dated July 13, 2023.

Conclusion

This strategic move by Lancor Holdings to raise Rs 150 crore through NCDs reflects the company's proactive approach to capital management. The high interest rate of 16.5% may indicate the company's strong need for capital, possibly for expansion or ongoing project financing. Investors and market watchers will likely keep a close eye on how Lancor utilizes these funds and manages the relatively high-cost debt in the coming years.