Share India Securities Ltd’s board has approved raising funds via issuance of secured, rated Non-Convertible Debentures (NCDs) aggregating up to Rs 500 million. This move is aimed at strengthening the company’s capital base and supporting its diversified financial services growth strategy.
Share India Securities Ltd, a prominent financial services firm listed on both BSE and NSE, has approved the issuance of Non-Convertible Debentures (NCDs) aggregating up to Rs 500 million. The board’s sanction of this fund-raising exercise marks a strategic step to bolster its financial muscle and fuel future growth prospects in a highly competitive and evolving market landscape.
NCD Issuance Details
The NCDs will be issued via private placement to institutional and qualified investors, offering a secured investment opportunity backed by collateral and personal guarantees from promoters.
The instruments are expected to carry attractive coupon rates, replicating Share India’s strong credit rating and solid financial performance.
Tenures and repayment structures are designed with flexibility to suit investor appetite, including quarterly interest payouts and principal redemption at maturity.
Strong Financial Profile and Investor Benefits
Share India Securities has demonstrated robust revenue growth, backed by diversified operations across equity, commodity, currency trading, mutual fund distribution, lending, and algo trading.
The company holds a CRISIL A+/Stable rating symbolizing moderate credit risk and strong governance standards.
Investors in these NCDs benefit from a higher yield compared to traditional fixed-income instruments, coupled with the security of collateralized funding.
Strategic Growth and Market Position
The fund mobilization from this NCD issuance will support Share India’s expansion plans, technology upgrades, and regulatory compliance initiatives, enhancing its competitive edge.
The company maintains a significant presence in over 280 locations and commands a notable share in India’s traded volumes, reflecting market trust and operational scale.
Risk Considerations
While the secured nature of these NCDs offers safety, investors should note exposure to market volatility and regulatory shifts influencing the underlying trading and financial sectors.
The private placement nature may limit liquidity, making these instruments more suitable for medium-term investors seeking stable returns.
This capital raise via NCDs underscores Share India Securities’ proactive financial strategy to sustain growth while rewarding investors with a well-rated, secured debt product. Market participants keen on fixed income options are advised to track the official offer details closely.
Sources: Share India Securities Ltd Official Release, Moneycontrol, Market Screener.