NACL Industries Limited Converts Inter-Corporate Loan to Compulsorily Convertible Debentures
NACL Industries Limited announced on March 25, 2026, that its Board of Directors approved the conversion of an existing inter-corporate loan to NACL Spec-Chem Limited into Compulsorily Convertible Debentures (CCDs). The conversion involves a loan amount of Rs. 51.95 Crores and is intended to restructure the company's financial exposure in its subsidiary and strengthen its capital base.NACL Spec-Chem Limited is a wholly owned subsidiary of NACL Industries Limited. The initial loan was granted for a two-year period. The CCDs will be compulsorily converted into equity shares in accordance with agreed terms and applicable laws.
The transaction qualifies as a related party transaction and will be conducted at arm's length. No fresh funds are being infused as part of this transaction.
The outstanding inter-corporate loan of Rs. 51.95 Crores is proposed to be converted into 5,195 Compulsorily Convertible Debentures (CCDs) of a face value of Rs. 1,00,000 each.
| Particulars | Details | |
|---|---|---|
| d) | Shareholding, if any, in the entity with whom the agreement is executed | NACL Spec-Chem Limited is a Wholly Owned Subsidiary of the Company. |
| g) | Whether the transaction would fall within related party transactions? If yes, whether at arm's length | Yes, the transaction qualifies as a related party transaction and the same is undertaken at arm's length basis. |
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