Deccan Cements to Raise ₹660 Crore via NCDs and CCDs for Debt Repayment
Deccan Cements will raise up to ₹660 Crores via NCDs and CCDs to repay debt. ₹557 Crores will be raised through NCDs with interest rates up to 12% p.a. Shareholders will vote on issuing up to ₹103 Crores in CCDs. Voting for the postal ballot is from May 15 to June 13, 2026.
The fundraising amount of ₹660 Crores is significant and directly addresses debt repayment, which can improve the company's financial health. However, the exact impact depends on the terms of the new debt and the company's future earnings.
The company is proactively managing its debt by raising funds through NCDs and CCDs, which is generally viewed positively as it can lead to a healthier balance sheet and improved financial flexibility.
Deccan Cements Limited announced today, May 14, 2026, that its Board of Directors has approved a plan to raise funds aggregating up to ₹660 Crores through the issuance of Non-Convertible Debentures (NCDs) and Compulsorily Convertible Debentures (CCDs).
The primary purpose of this fundraising exercise is to repay outstanding term loans and related liabilities of the company.
The Board also approved seeking shareholder consent via Special Resolution through a Postal Ballot for the issuance of CCDs amounting to up to ₹103 Crores. In connection with this, a Calendar of Events, appointment of a Scrutinizer, and other related matters for the Postal Ballot Process were approved. The Board meeting commenced at 15:30 IST and concluded at 17:00 IST.
The NCDs, totaling up to ₹557 Crores, will be issued via private placement with a tenure of up to 72 months from the allotment date, expected on or before June 30, 2026. The interest rate will be 8% p.a. in Year 1, 10% p.a. in Year 2, and 12% p.a. from Year 3 onwards, with a redemption premium of 6% p.a., all payable monthly. Redemption will occur in quarterly installments starting from Year 3.
The CCDs, up to ₹103 Crores, will also be issued via private placement to investors including Neo Credit Opportunities Fund I and others. Each CCD has a face value and issue price of ₹715, convertible into one equity share of face value ₹5 at a premium of ₹710. The conversion ratio is 1:1 and can occur anytime within 18 months from the allotment date. The allotment is expected within 15 days of passing the Special Resolution. The Postal Ballot notice will be sent on May 14, 2026, with voting open from May 15, 2026, at 9:00 A.M. to June 13, 2026, at 5:00 P.M., and results are expected on June 14, 2026.
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Deccan Cements Limited filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Deccan Cements Limited. Read the original for the full detail.