Thyrocare Tech Parent Company Proposes Issuing NCDs Worth Rs 1,700 Crore

Thyrocare Technologies Ltd.'s parent company, API Holdings, proposed issuing non-convertible debentures worth Rs 1,700 crore to avail of debt, according to an exchange filing on Monday.

API had initially issued NCDs worth Rs 1,545.38 crore. The proceeds from the new issues will be used to "redeem the existing debentures in full".

Docon Technologies Pvt., which holds 71.06% of the equity share capital of Thyrocare, pledged its entire shareholding for securing the existing debentures, which will be released on redemption of the aforementioned debentures. Docon is a promoter of Thyrocare Technologies.

After Docon issues its new debentures, it will use some of its shares in Thyrocare as collateral for the same. The exact number of shares will be decided when the pledge is made.

The pledge will aggregate to the maximum of 61% of the equity share capital of Thyrocare.

"This is in accordance with the terms of the debenture trust deed and subject to compliance with applicable laws and disclosures/intimations as may be required from time to time," the filing said.

An NCD is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.