New Delhi: Bharat Forge, one of India’s leading forging companies, plans to raise up to INR 500 crore through non-convertible debentures (NCDs) and term loan.
“Fund raising of an amount of INR 12,50,000,000/- by way of issuance of rated, listed, unsecured, redeemable, non-convertible debentures (NCD), on a private placement basis; and availing of unsecured term loan up to an amount INR 37,50,000,000/-,” Bharat Forge said in a stock exchange filing on March 13, 2024.
According to the stock exchange filing, Bharat Forge will offer 12,500 unsecured NCDs of face value INR 1,00,000 each, aggregating up to INR 12,50,000,000/- with an interest rate of 7.80% per annum. These NCDs are expected to be allotted on or about March 20, 2024 and have tenure of 3 years, hence the redemption date would be on or about March 20, 2027.
As per the company, “the coupon payment frequency is: Annually and on maturity; to be listed on the National Stock Exchange of India Limited.”
Bharat Forge further said that, “The rights/interests/privileges of the holders of the NCDs will be set out in the debenture trust deed to be entered into between the company and the debenture trustee, and any other related document thereto.”
The company further said in the case of delay in the payment, the company shall pay a coupon on the NCDs at a rate of 2% a year over and above the applicable coupon rate. This will be done in case of any delay in payment of interest / principal amount of the NCDs for the period until such failure to pay is cured to the satisfaction of the debenture trustee (acting on the instructions of the NCD holders).
Post this announcement, Bharat Forge saw a decrease in its share price by 1.28% to INR 1,113.60 on March 14, 2024 as of 3.30 pm on BSE. How the funds are going to be utilised is yet to be disclosed by the company.
