Share India Securities Limited moves to reshape its capital structure

The NCDs carry a fixed 10.30% annual coupon, payable monthly, with an approximately 21-month tenor. The cited terms do not establish an exact maturity date or a principal repayment schedule, so whether redemption is bullet or amortising could not be confirmed ^[1].

Comparison with borrowing cost: a like-for-like spread cannot be calculated because the latest financial data reports total debt of ₹593.32 Cr for Q2 FY27 ^[2], but the weighted average cost of borrowing was not available in the cited quarterly or annual financial information. Therefore, 10.30% is the stated coupon cost, not necessarily the all-in effective cost.

The true effective cost would also depend on issue expenses, placement fees, any discount or premium at allotment, and redemption terms. The appropriate comparison formula is:

`NCD effective cost − reported weighted average cost of borrowing`

On the evidence available, the NCD coupon can be stated at 10.30%, but the premium or discount versus the company’s weighted average borrowing cost remains not confirmed.

The stated use is liquidity support, not explicitly expansion of the NBFC subsidiary’s lending book. The proposed NCD issue is described as addressing medium-term liquidity needs rather than long-term capex; the cited description does not identify the ₹75 Cr as a ring-fenced allocation for incremental NBFC lending ^[1].

Debt-to-equity impact

The latest quarterly figures report:

• Total debt: ₹593.32 Cr ^[2]
• Total equity: ₹2,905.8 Cr ^[3]
• Reported debt-to-equity ratio: 0.20x ^[4]

Assuming the ₹75 Cr is raised as incremental debt through the NCD issue, with equity unchanged:

• Pro-forma debt: ₹668.32 Cr
• Pro-forma debt-to-equity: ₹668.32 Cr / ₹2,905.8 Cr = 0.23x
• Change versus the reported 0.20x: approximately +0.03x

Thus, the infusion would modestly increase consolidated leverage from around 0.20x to 0.23x. This is a derived estimate, and the actual ratio could differ if the proceeds replace existing borrowings, are held as cash, or are accompanied by changes in equity or debt before the next reporting date.

Verdict: The ₹75 Cr base NCD issue is modest relative to Share India’s latest reported debt: it equals 12.6% of Q2 FY27 total debt of ₹593.32 Cr. If the full ₹50 Cr green-shoe option is exercised, the issue could reach ₹125 Cr, or 21.1% of existing debt. The latest reported interest coverage was 4.69x, down from 5.58x in Q1 FY27, but still above the FY26 and TTM levels of 4.36x and 4.46x, respectively. ^{[2] [5] [6] [7] [8]}

Debt and coverage comparison

The NCD carries a 10.30% annual coupon, implying approximately ₹7.7 Cr of annual coupon interest on the ₹75 Cr base issue, calculated as ₹75 Cr × 10.30%. ^[1] This is an incremental financing cost, but a post-issue interest-coverage ratio cannot be calculated reliably from the reported figures because the company has not provided a pro forma coverage calculation or the precise coverage-ratio definition alongside the issuance disclosure.

Does it use a previously approved fund-raising limit?

That cannot be confirmed from the cited disclosures. A CRISIL release refers to a ₹250 Cr NCD rating, but it does not establish that ₹250 Cr was a board-approved borrowing or fund-raising limit. ^[9] The separately disclosed ₹99.90 Cr NCD transaction relates to an earlier issuance and subsequent board-approved early redemption, not a clearly identified umbrella fund-raising authorization. ^{[10] [11]}

Accordingly, the defensible conclusion is that the ₹75 Cr issue is 12.6% of current reported debt, with a possible 21.1% maximum including the green shoe, while utilisation of any earlier board-approved fund-raising limit is not confirmed by the cited material.