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Share India Securities share price was locked in 20% upper circuit on Thursday's session after the company's finance committee approved a ₹50 crore issuance of Non-Convertible Debentures (NCD) through private placement. This move is anticipated to strengthen the company's funding capabilities and support its ongoing business growth.

According to the company's filing, Share India Securities has received approval from its board to issue a maximum of 5,000 secured, listed, rated, taxable, and redeemable non-convertible debentures (NCDs), each with a face value of ₹1,00,000, totaling ₹50 crore. These NCDs will carry an interest rate of 10.50% per annum, payable on a monthly basis, and will mature in 712 days from the date of deemed allotment.

The repayment of the principal will occur in quarterly installments, amounting to 12.5% of the face value. To facilitate better liquidity for investors, these NCDs will be listed on the BSE Wholesale Debt Market (WDM) segment.

This issuance will be backed by a security cover of 1.5 times, achieved through the hypothecation of Margin Trading Facility (MTF) receivables, trade securities, and other current assets. Additionally, the promoters will offer a personal guarantee to provide enhanced credit assurance for investors.

In case of default, the company has proposed an added coupon rate of 2% to be incurred until the outstanding amounts are settled.

(more to come)

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