Share India Securities Limited moves to reshape its capital structure

The 10.50% coupon rate on the INR 150 Crore Non-Convertible Debenture (NCD) issuance represents the marginal cost for this specific debt tranche ^[1]. Share India Securities does not publicly disclose a consolidated weighted average cost of borrowing (WACB) in its financial filings or KPI data, preventing a direct comparison between this coupon rate and the company's broader portfolio-level cost of debt.

Evidence and Context

• Issuance Terms: The INR 150 Crore NCD issuance, approved by the Finance Committee on July 20, 2026, carries a fixed coupon rate of 10.50% per annum, payable monthly ^[1].
• Finance Costs: For FY26, the company reported consolidated finance costs of Rs 131.25 Crores ^[2] and standalone finance costs of Rs 104.22 Crores ^[3].
• Interest Coverage: The consolidated interest coverage ratio was reported at 4.36x for FY26 ^[4], while the standalone interest coverage ratio was 4.79x ^[5].

Implications

The 10.50% coupon rate serves as the cost of this specific capital raise. Because the company does not report a WACB, it is not possible to determine whether this issuance is accretive or dilutive to the existing cost of debt. The issuance is secured by a pari-passu charge over current assets and receivables with a minimum cover of 1.35 times, alongside personal guarantees from promoters, which are standard credit-enhancement features for this type of private placement ^[1].

Limits

The absence of a reported WACB or a breakdown of total debt by interest rate in the provided filings constitutes a disclosure gap. Consequently, any assessment of how this rate compares to the company's historical average cost of debt would be speculative.

Leverage Impact Verdict

The addition of Rs 150 Crores in Non-Convertible Debentures (NCDs) ^[6] has a minimal and highly manageable impact on Share India Securities' leverage profile due to its substantial equity base of Rs 2,634.9 Crores (consolidated) ^[7] or Rs 2,234.1 Crores (standalone) ^[8] as of the latest reported balance sheet (Q4 FY26).

Because absolute debt figures are not separately disclosed in the latest balance sheet metrics, the purely incremental debt-to-equity ratio stands at a very conservative 0.057x on a consolidated basis and 0.067x on a standalone basis. Overlaying the historical gearing proxy of 0.21x from June 2025 ^[9], the pro-forma gearing level remains highly conservative, rising to only 0.24x to 0.27x depending on the specific definition and reporting basis used.

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Pro-Forma Leverage Analysis

The table below outlines the pro-forma impact of the Rs 150 Crores NCD issuance ^[6] on the company's capital structure, using the latest reported balance sheet metrics from Q4 FY26 ^[7] and historical gearing benchmarks ^[9].

Notes: † Assumes the historical 0.21x gearing proxy ^[9] represents the baseline Debt-to-Equity ratio. ‡ Assumes the historical 0.21x gearing proxy ^[9] represents the baseline Gearing ratio defined as Debt / (Debt + Equity).

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Financial Implications

• Cost of Capital and Interest Coverage: The NCDs carry a coupon rate of 10.50% per annum with a 25-month tenure ^[6]. This translates to an incremental annual interest expense of Rs 15.75 Crores (derived). Given the company's strong trailing twelve months (TTM) Interest Coverage Ratio of 4.36x consolidated ^[10] and 4.79x standalone ^[11], the incremental interest burden is well within the company's operating cash flow capacity.
• Asset Backing and Security: The NCDs are secured by the hypothecation of current assets (including Margin Trading Facility receivables and trade securities) and backed by promoter guarantees ^[6]. This structure is consistent with previous issuances, such as the Rs 50 Crore NCD issue in October 2025 which maintained a 1.5x security cover ^[12].
• Growth Funding: The capital raised is expected to support the expansion of the company's margin trading book and other capital-market operations ^[12], which have driven standalone revenue growth of 104.6% YoY in Q4 FY26 ^[13].

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Disclosure Gaps & Caveats

• Baseline Debt Disclosure: The absolute value of outstanding borrowings was not separately reported in the Q4 FY26 structured financial metrics. The pro-forma calculations rely on the historical 0.21x gearing ratio from June 2025 ^[9] as a baseline proxy. If actual debt levels as of Q4 FY26 have deviated significantly from this proxy, the resulting pro-forma gearing will vary.
• Timing of Issuance: The NCD issuance was approved by the Finance Committee on July 20, 2026 ^[6], which post-dates the latest reported balance sheet of Q4 FY26 (ended March 31, 2026). The actual balance sheet impact will reflect in the Q2 FY27 financial results.

The regulatory filing regarding the INR 150 Cr NCD issuance does not specify the end-use of the proceeds ^[1].

While the disclosure confirms the Finance Committee's approval for the issuance of 1,50,000 NCDs, it does not detail whether the capital is intended for NBFC lending book expansion or general corporate purposes ^[1]. The filing references a broader fund-raising proposal of up to INR 300 Crores initially disclosed on July 30, 2025, but does not provide the specific allocation breakdown for this tranche ^[1].