PAKKA LIMITED Approves INR 540 Crore Issuance of Secured Non-Convertible Debentures

PAKKA LIMITED Approves INR 540 Crore Issuance of Secured Non-Convertible Debentures​

Pakka Limited announced that its Board of Directors, in a meeting held on May 26, 2026, approved significant financial restructuring measures, including the issuance of Non-Convertible Debentures (NCDs) aggregating up to INR 540 Crores.

The Board reviewed and approved the issuance and allotment of non-convertible debentures (NCDs) on a private placement basis. The total proposed issuance is structured into two tranches:

1. Junior NCDs: Up to 324,000 unlisted, junior, secured, unrated, redeemable non-convertible debentures, each with a face value of INR 1,00,000, aggregating up to INR 324 crores.
2. Senior NCDs: Up to 21,600 unlisted, senior, secured, unrated, redeemable non-convertible debentures, each with a face value of INR 1,00,000, aggregating up to INR 216 crores.

The total size of the issue stands at INR 540 Crores.

Security and Documentation Approvals​

Alongside the NCD issuance, the Board also approved the creation of security to secure the debentures. This security will involve an equitable mortgage of the company's immovable properties, hypothecation/charge over certain movable assets/current assets, escrow arrangements, and other security as determined in the definitive transaction documents.

The Board further approved the execution of various definitive agreements and transaction documents necessary for the transaction. These include the Debenture Trust Deed, Deed of Hypothecation, Escrow Agreement, Debenture Subscription Agreement, Security Trustee Agreement, and the Disclosure Document/Information Memorandum.

Strategic Withdrawal of Credit Rating​

In a separate key decision, the Board noted the existing credit ratings of the Company's credit facilities, which were rated 'CARE BBB-' (Long Term) and 'CARE A3' (Short Term) by CARE Ratings Limited. Considering the proposed refinancing and prepayment of these existing rated facilities, the Board approved the voluntary withdrawal of these credit ratings. This withdrawal is subject to the completion of the proposed transaction, repayment of existing facilities, and receipt of necessary approvals from lenders, CARE Ratings Limited, and other concerned parties, forming part of the Company’s financial restructuring and capital management strategy.

Operational Authorization​

The Board also granted authorization to Mr. Ved Krishna, Managing Director (Promoter), Mr. Gautam Ghosh, Executive Director, Mrs. Manjula Jhunjhunwala, Director (Promoter), and other officials of the Company. These authorized parties are empowered to finalize the issuance terms, execute definitive documents, and undertake all necessary actions related to the NCD transaction.

Details regarding the proposed NCD issuance, including the tenure of the instruments, coupon/interest rates, and charges created, are provided below:

PAKKA Stock Price Movement​

Today, PAKKA LIMITED shares edged higher to settle at ₹89.61, gaining 0.02% as the market closed. Trading concluded with a notable volume of 113,428 shares, indicating consistent investor interest during the session.