
Equitas Small Finance Bank declares raising of ₹500 crore fund via NCDs with 50% green shoe option
The board of Equitas Small Finance has approved the issuance of non-convertible debentures (NCDs) worth up to ₹ 500 crore through private placement.
The proposed issue will consist of up to 50,000 rated, listed, unsecured, redeemable, fully paid-up subordinated NCDs, each having a face value of ₹ 1 lakh. These debentures will be categorized as Lower Tier II Capital in line with Basel II capital adequacy norms.
The total issue size includes a green shoe option of up to 25,000 NCDs, amounting to ₹ 250 crore, allowing the company to raise additional funds depending on investor demand.
The issuance will be done in a single series and will help strengthen the company's capital base.
A green-shoe option is a provision that allows a company to raise additional funds by issuing more securities than initially planned, in case of strong investor demand. For non-convertible debentures (NCDs), this means the issuer can expand the total fundraising amount without launching a separate issue. It helps the company manage oversubscription efficiently and ensures better price and liquidity stability. In this case, the green-shoe option gives the company flexibility to raise an extra ₹ 250 crore—on top of the base issue of ₹ 250 crore—bringing the total potential issuance to ₹ 500 crore.
The stock has declined over 29 percent in the past one year. After gaining 5.5 percent in June, it has dropped another 6 percent so far in July. The start of the year was marked by sharp volatility — the stock rose 4 percent in January, fell 14.5 percent in February, slipped 3.3 percent in March, surged 22 percent in April, and declined 5 percent in May.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Standard
a day ago
- Business Standard
Capital India Finance raises Rs 50 cr via NCDs
Capital India Finance announced the successful issuance of senior, secured, rated, listed, redeemable, taxable Non-Convertible Debentures (NCDs) amounting to Rs 50 crore on a private placement basis. This move is aligned with the Company's strategy to strengthen its funding base and support ongoing business expansion.


Business Standard
a day ago
- Business Standard
Veranda plans demerger of its commerce vertical
Veranda Learning Solutions has announced a strategic restructuring of its Commerce vertical as part of its Veranda 2.0 vision. This move aims to unlock long-term value, enhance operational agility, and accelerate growth in one of India's most competitive education domains. As part of the realignment, Veranda Learning will acquire the remaining 24% equity stake held by Prof. J.K. Shah in Veranda XL Learning Solutions, the principal company within the Commerce portfolio. This transaction will result in Veranda XL becoming a wholly owned subsidiary, thereby simplifying the group structure and easing the path to demerger. In line with the approved objectives of the Qualified Institutional Placement (QIP), a significant portion of the proceeds will be utilized to redeem the senior, secured, unlisted, redeemable, non-convertible debentures (NCDs) issued by the Company's subsidiary, Veranda XL Learning Solutions (Veranda XL) to Ascertis Credit (Formerly Barings Private Equity Asia). This redemption will enable the repayment of a majority of the subsidiary's existing debt. Post this transaction, the subsidiary which forms part of the Commerce verticalwill be on the path to becoming debt-free. Following the in-principle nod from its Restructuring Committee, Audit Committee, the Board have approved the incorporation of a wholly owned subsidiary by the name J.K. Shah Commerce Education Limited (or another name as may be approved by the appropriate authorities), which will serve as the platform for the vertical's operations going forward. The proposed Scheme of Arrangement is now progressing through requisite internal approvals before being submitted to the Board and regulatory bodies for its final clearance. The new entity will unify Veranda's top-performing commerce education brandsJ.K. Shah Classes, BB Virtuals, Navkar Digital Institute, Tapasya College of Commerce, and Logic School of Management into a single powerhouse delivering CA, CS, CMA, and ACCA test preparation. With a legacy of mentoring thousands of CA rankers over the years, the vertical has built a trusted reputation across India. This demerger is an important step towards building focused business units that can pursue independent growth strategies. The Commerce vertical has shown immense promise, and we believe this move will enable it to fully realise its potential, said Suresh Kalpathi, Executive Director and Chairman, Veranda Learning Solutions.


News18
a day ago
- News18
Omaxe raises Rs 431 cr through issue of debentures for biz growth
Agency: PTI Last Updated: New Delhi, Jul 28 (PTI) Realty firm Omaxe Ltd has raised Rs 431 crore through the issue of debentures on a private placement basis for business growth. In a regulatory filing on Monday, the company informed that its subsidiary — Omaxe New Chandigarh Developers Pvt Ltd, has raised Rs 431 crore by issuance and allotment of 43,100 Non-Convertible Debentures (NCDs) of face value Rs 1 lakh each through private placement. Recently, Omaxe announced an acquisition of a 450-acre land parcel in Indore to develop a township at an investment of Rs 1,200 crore. Omaxe, which is one of the leading real estate firms in the country, has a presence in 30 cities across eight states of North and Central India. It has delivered more than 135 million sq ft of area since inception. PTI MJH DRR Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.