CESC Limited Approves Issuance of 25,000 Secured Non-Convertible Debentures for Rs 250 Crore
CESC Limited has approved a private placement for the issuance of secured debt securities. A Committee of the Board of Directors at a recent meeting authorized the company to issue 25,000 Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures (NCDs) amounting to INR 250,00,00,000/-.The debentures, carrying a face value of Rs 1 lakh each, are being issued on a private placement basis. The proposed issue is set to be unlisted and has a total redemption tenure spanning nine years and ten months and twenty five days from the deemed date of allotment. The expected timeframe for maturity is June 30, 2036, with the Deemed Date of Allotment set as August 5, 2026.
The interest structure for the NCDs is defined by a Coupon Rate equivalent to 3 Months T-Bill Rate + 2.60% p.a. Interest payments will be made on a monthly basis, scheduled for the last day of each coupon period or the preceding business day if necessary.
Security and Special Rights
The debt securities are secured by both immovable fixed assets and movable fixed assets of the company, present and future. The security is provided through mortgage and hypothecation over the Company. This charge maintains a security cover of 1.25 times at all times during the tenure of the Debentures.A specific special right attached to the instrument includes a Call/Put Option, which will become available at the end of three years from the deemed date of allotment. The Call/Put Price has been set at par.
The agreement also stipulates an additional interest rate of 2% per annum if there is a default in payment of any amount payable by the Company on its due date for a period exceeding three months or in case of default in interest or principal payment.
Principal Redemption Schedule Details
The company's principal redemption schedule outlines staggered repayment amounts across the duration of the NCDs, starting from March 31, 2027. The initial tranches include payments of Rs 2,50,00,000.00 due on March 31, 2027, and June 30, 2027. Later tranches range from Rs 3,75,00,000.00 to Rs 5,00,00,000.00, with the final tranche payment being Rs 2,50,00,00,000.00 on June 30, 2036.The following table details a portion of the principal redemption schedule:
| Scheduled Redemption Date | Redemption Amount (in INR) |
|---|---|
| March 31, 2027 | 2,50,00,000.00 |
| June 30, 2027 | 2,50,00,000.00 |
| September 30, 2027 | 3,75,00,000.00 |
| March 31, 2028 | 3,75,00,000.00 |
| June 30, 2029 | 3,75,00,000.00 |
| September 30, 2030 | 5,00,00,000.00 |
| March 31, 2034 | 5,00,00,000.00 |
| June 30, 2036 | 6,25,00,000.00 |
CESC Stock Price Movement
As of 12:08 PM, CESC Limited shares are trading flat at ₹165.57 in the live market, reflecting zero change in its equity value. The stock has thus far traded within a range, with an intraday high reaching ₹169.1 and touching a low of ₹165.55.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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