Crompton Greaves Consumer Electricals to use NCDs to raise Rs925 crore

13 Jun 2022 , 03:28 PM

Crompton Greaves Consumer Electricals Ltd announced on Monday that it plans to raise long-term capital of up to Rs925 crore through a private offering of non-convertible debentures.

Non-convertible debentures (NCDs) are a type of debt that firms utilize to raise long-term funds. This is accomplished by means of a public issue. NCDs are fixed-term debt instruments in which investors receive a set rate of interest on a regular basis.

Crompton Greaves Consumer Electricals Ltd (CGCEL) said in a regulatory filing that its board of directors approved the buyback of rated, listed commercial paper worth up to Rs600 crore at its meeting on Monday. These are part of a proposal to change the company’s debt profile that was evaluated and approved by the board, according to the statement.

The firm said it wants to obtain long-term financing by issuing secured, graded, listed, redeemable non-convertible debentures (NCDs) on a private placement basis up to Rs925 crore, subject to borrowing restrictions set by shareholders.

According to Sebi listing standards, CGCEL’s board also authorized proposals from MacRitchie Investments Pte Ltd and Seletar Investments Pte Ltd, both of which are members of the promoter group, to be reclassified from the ‘promoter and promoter group’ category to the ‘public’ category.