The company plans to secure an unsecured term loan of up to Rs. 375 crore, while it plans to raise Rs 125 crore by issuing NCDs on a private placement basis.
16 Mar 2024 | 6208 Views | By Autocar Pro News Desk
Auto component maker Bharat Forge is planning to raise an amount of up to Rs 500 crore through a term loan and by issuing non-convertible debentures (NCDs).
The company plans to secure an unsecured term loan of up to Rs. 375 crore, while it plans to raise Rs ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Auto component maker Bharat Forge is planning to raise an amount of up to Rs 500 crore through a term loan and by issuing non-convertible debentures (NCDs).
The company plans to secure an unsecured term loan of up to Rs. 375 crore, while it plans to raise Rs 125 crore by issuing rated, listed, unsecured, redeemable, NCDs on a private placement basis, according to an exchange filing.
Non-convertible debentures are fixed-income instruments, usually issued by companies in the form of a public issue to accumulate long-term capital appreciation.
Bharat Forge proposes to issue 12,500 NCDs with a face value of Rs 1 lakh each and list them on NSE. The debentures, which will be allotted on or about March 20 and have a tenure of three years, will come with a coupon rate of 7.80%.
The company’s board has delegated authority to an investment committee for strategic business and the committee has approved the fundraising plans. The filing did not have any information on the use proceeds.
Autocar Professional had earlier reported that Bharat Forge is looking at a capital expenditure of Rs 1,000 crore for its India business from the financial year 2024 to 2026. This expense will be incurred for its core business, electric vehicle components and systems, and defence.