Pakka Limited Approves Issuance of ₹540 Crore Secured NCDs, Withdraws CARE Ratings
Pakka Limited's Board approved issuing up to ₹540 Crore in secured, unlisted non-convertible debentures (NCDs) via private placement. Junior series NCDs will bear 19.40% interest, maturing by May 31, 2035, while senior series NCDs will yield 11.40%, maturing by September 30, 2033. The company also approved the voluntary withdrawal of its CARE ratings as part of a financial restructuring strategy.
The issuance of ₹540 Crores in NCDs is a material financial event that will significantly impact the company's capital structure, debt levels, and financing costs. The withdrawal of credit ratings also requires careful monitoring.
The company is raising significant capital through NCDs, which can be seen as a positive step for its financial restructuring and growth. The approval of NCD issuance indicates confidence in the company's ability to manage its debt.
Pakka Limited's Board of Directors, in a meeting held on May 26, 2026, approved the issuance of secured non-convertible debentures (NCDs) on a private placement basis. The issuance will aggregate up to ₹540 Crores, divided into two series: junior secured NCDs up to ₹324 Crores and senior secured NCDs up to ₹216 Crores. These unlisted, unrated NCDs will carry coupon rates of 19.40% per annum for the junior series and 11.40% per annum for the senior series. The tenure for the junior series is up to May 31, 2035, and for the senior series is up to September 30, 2033. The company will create security by way of equitable mortgage of immovable properties, hypothecation of movable assets, and escrow arrangements to secure these NCDs. The Board also approved the execution of various definitive agreements and authorized key management personnel, including Managing Director Ved Krishna, to finalize terms and execute necessary documents.
Furthermore, the Board discussed the proposed refinancing of existing term loan facilities through the issuance of NCDs and other structured financing. Consequently, the Board approved the voluntary withdrawal of the existing credit ratings (CARE BBB- Long Term and CARE A3 Short Term) assigned by CARE Ratings Limited. This decision is part of the company's broader financial restructuring, liability optimization, and capital management strategy. The Board meeting commenced at 10:00 a.m. and concluded at 4:11 p.m. on May 26, 2026.
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PAKKA 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 high impact, which is the band that most often changes something.
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