Deccan Cements Approves ₹660 Crore Fundraising Plan; Shares Fall 2.45%

Mumbai, May 15: Deccan Cements Limited approved a fundraising proposal aggregating up to ₹660 crore through issuance of Non-Convertible Debentures (NCDs) and Compulsorily Convertible Debentures (CCDs), according to a regulatory filing.

The company’s board, in its meeting held on Thursday, approved issuance of NCDs and CCDs through private placement routes for repayment of outstanding term loans and related liabilities.

As per the exchange disclosure, the company plans to issue NCDs aggregating up to ₹557 crore and CCDs aggregating up to ₹103 crore.

The filing stated that the proposed CCD issuance would involve investors including Neo Credit Opportunities Fund I, Neo Special Credit Opportunities Fund and related entities. The CCDs carry a conversion ratio of 1:1, with each debenture convertible into one equity share of face value ₹5 at a premium of ₹710 per equity share.

According to the company, the conversion period for CCDs will be within 18 months from the allotment date. The board also approved seeking shareholder consent through postal ballot for the CCD issuance.

The proposed NCDs will carry staggered coupon structures beginning at 8% per annum in the first year and increasing to 12% per annum from the third year onwards, payable monthly. The securities will remain unlisted, as per the disclosure.

The company further disclosed that the fundraising would be backed by charges over plant land, immovable assets and movable assets of the company and its subsidiaries.

Stock Market Snapshot

Deccan Cements share price traded lower on May 15, 2026, following the fundraising announcement.

As of 10:14 AM IST on May 15, 2026, the stock was trading at ₹627.80 on the National Stock Exchange, down 2.45% from the previous close of ₹643.60, according to exchange data.

The Deccan Cements share price moved between ₹623.40 and ₹636.20 during the trading session so far. Investors appeared cautious as the company announced a sizeable debt-linked fundraising exercise aimed at refinancing liabilities.

The company’s market stood at approximately ₹1,900 crore based on prevailing exchange data.

Company Background

Deccan Cements Limited operates in the cement manufacturing sector with production facilities catering to infrastructure and construction markets.

The company manufactures cement products for residential, industrial and infrastructure applications and operates primarily in southern India.

Private placement issuances of NCDs and CCDs are commonly utilised by corporates for refinancing existing borrowings, liability management and capital restructuring.

Conclusion

The proposed ₹660 crore fundraising indicates a significant liability management initiative by Deccan Cements through a combination of debt and convertible instruments.

The transaction structure, including secured NCDs and CCD conversion terms, reflects the company’s strategy to refinance obligations while securing medium-term capital support. The stock traded lower in early trade following the announcement.

Source:

• https://www.nseindia.com/get-quote/equity/DECCANCE/Deccan-Cements-Limited
• https://nsearchives.nseindia.com/corporate/DECCANCE_14052026171817_Outcome.pdf