Northern Arc Capital Gets Board Nod To Raise Rs 5,000 Crore Via NCDs
The company also announced the appointment of Michael Jude Fernandes as director.
Northern Arc Capital Ltd. received an approval from the board of directors to raise up to Rs 5,000 crore through an issuance of non-convertible debentures, according to an exchange filing on Monday.
The announcement came after the company held their 17th annual general meeting on the same day. The board of directors has approved "Offer and issue of Non-Convertible Debentures, in one or more tranches on a private placement basis up to INR 5000 Crore", the filing stated.
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.
Along with the NCDs, the company also announced the appointment of Michael Jude Fernandes as director.
Shares of Northern Arc Capital settled 0.81% higher at Rs 252.1 apiece on the National Stock Exchange before the announcement. The share price has risen 17.08% on a year-to-date basis.
