Image Source: Neeraj Industries
GEE Ltd announced it will consider raising funds via issuance of non-convertible debentures (NCDs), aiming to diversify funding sources, support growth initiatives, and strengthen liquidity. Listed NCDs typically provide fixed-income options to investors and require ratings, trustee appointments, and SEBI-compliant disclosures, aligning governance and transparency with market best practices.
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GEE Ltd will evaluate a fund raise by issuing NCDs, reflecting a strategic approach to broaden its capital base while optimizing borrowing costs and maturity profiles. For listed companies, NCD issuance commonly involves a board-approved private placement or public issue, credit rating, trustee appointment, and adherence to SEBI’s non-convertible securities regulations.
Key highlights
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Instrument: Non-convertible debentures (NCDs), offering fixed returns and no equity dilution.
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Strategic rationale: Diversify funding beyond bank lines, match tenor to project needs, and enhance liquidity buffers.
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Compliance: Requires credit rating, debenture trustee, ISIN creation, and SEBI-compliant offer documents and disclosures.
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Process path: Board approval, private placement/public issue, allotment, listing, and ongoing LODR reporting.
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Investor appeal: Predictable yields, tradability on exchanges, and clearer covenant structures vs. loans.
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Governance: Detailed use-of-proceeds and monitoring frameworks to align with regulatory and investor expectations.
By weighing a listed NCD issuance, GEE Ltd signals intent to strengthen its balance sheet resilience and fund growth with transparent, market-aligned debt.
Sources: India Law Offices
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