Kuantum Papers Allots ₹100 Crore in NCDs on Private Placement Basis
Kuantum Papers Limited has allotted 10,000 NCDs worth ₹100 crore on a private placement basis. The NCDs mature on June 2, 2030, and offer a 12.70% annual coupon. The issuance is secured by company assets and personal guarantees.
The issuance of ₹100 crore in debt will impact the company's capital structure and leverage ratios. While it's a significant amount, it's a private placement and secured, suggesting it's a planned financing activity rather than a distress signal or a major growth initiative.
The announcement details a routine debt fundraising activity through NCD issuance, which is a standard financial operation for companies. It does not contain information that would significantly impact the company's valuation or future prospects in a positive or negative way.
Kuantum Papers Limited has approved the allotment of 10,000 unlisted, unrated, senior, secured, redeemable, non-convertible debentures (NCDs) with a face value of ₹1,00,000 each, aggregating to ₹100 crore. The Finance Committee of the company sanctioned this issuance on a private placement basis on September 3, 2026.
The NCDs carry a coupon rate of 12.70% per annum, comprising a 9.70% payable monthly and a 3.00% redemption premium. These debentures are secured by a subservient charge over current and movable fixed assets, personal guarantees from Mr. Jagesh Kumar Khaitan and Mr. Pavan Khaitan, a shortfall undertaking from Kapedo me Enterprises Limited, and a lien-marked fixed deposit. The minimum security cover is maintained at 1.50x the aggregate redemption amount, accrued coupon, and other outstanding amounts.
The maturity date for these NCDs is June 2, 2030. In case of default in payment of coupon or redemption amount, a default charge of 2.00% per annum will be applicable. The equity shares of Kuantum Papers Limited are listed on BSE Limited and the National Stock Exchange of India Limited.
A plain-language summary of a public exchange filing by Kuantum Papers Limited. Read the original for the full detail.