The company’s Board of Directors approved the proposal during a recent meeting, reinforcing its commitment to raising capital through debt instruments without diluting shareholder equity.
“We hereby inform that the duly authorized Committee of Directors at its meeting held today i.e., Monday, March 10, 2025, has considered and approved the issuance of unsecured, redeemable, rated, listed, non-convertible debentures (“NCDs” or “ Debentures”) aggregating up to Rs 500 Crore, which NCDs are to be issued in following three separately transferable and redeemable principal parts,” the company informed.
The unsecured, rated, listed, and redeemable NCDs will be issued in three separate tranches under STRPPs (Separately Transferable Redeemable Principal Parts):
STRPP 1: Rs 100 croreSTRPP 2: Rs 100 crore
STRPP 3: Rs 300 crore (including STRPP 1 and STRPP 2)
The cumulative amount of the STRPPs will not exceed Rs 500 crore.
The issuance will be conducted through a private placement, targeting institutional investors and high-net-worth individuals (HNIs). A total of up to 50,000 debentures will be offered across all tranches, comprising 10,000 STRPP 1 debentures, 10,000 STRPP 2 debentures, and 30,000 STRPP 3 debentures.
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This structured debt offering is expected to enhance liquidity and financial flexibility, allowing the company to efficiently manage its capital requirements and fund expansion plans. As the debentures are rated and listed, they provide an attractive investment opportunity with fixed interest payouts and principal security.
The shares of Hindustan Zinc closed 0.55% lower at Rs 426.70 on the BSE on Monday.
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