Patel Engineering Clears ₹100 Crore NCD Issue Offering 10.25% Monthly Returns
By HDFC Sky | Published at: Jul 25, 2025 01:13 PM IST
Mumbai, July 25, 2025 – Patel Engineering Ltd (NSE: PATELENG | BSE: 531120) has approved the issuance and allotment of up to ₹100 crore in secured, listed, rated Non‑Convertible Debentures (NCDs) via private placement, following an Allotment Committee decision earlier today. The issue will comprise 5,000 senior secured transferable debentures with a face value of ₹1 lakh each. This is along with a green shoe option for another 5,000 units, allowing flexibility to raise up to ₹200 crore if needed.
This capital raising forms part of Patel Engineering’s broader financial strategy for FY26. It includes securing board approval for a larger ₹200 crore NCD issuance in flexible tranches – including rated/unrated and secured/unsecured variants. The move underscores the company’s intent to bolster liquidity and support its expanding project execution pipeline.
Stock Performance
As of 12:24 PM IST on July 25, shares of Patel Engineering Ltd were trading at ₹39.71, up 2.08% from the previous close, after opening at ₹38.95 and hitting an intraday high of ₹40.21 and a low of ₹38.56.
Key Terms of NCD Issue
The company’s board has greenlit the issuance of 5,000 Senior, Secured, Rated, Listed, and Transferable NCDs with a face value of ₹1 lakh each, aggregating to ₹50 crore. Additionally, a green shoe option for another 5,000 NCDs of similar denomination brings the total potential issue size to ₹100 crore.
Allotment Details
| Particulars | Details |
|---|---|
| Type of Securities | Senior, Secured, Rated, Listed, Transferable NCDs |
| Total NCDs (Base + Green Shoe) | 10,000 |
| Face Value per NCD | ₹1,00,000 |
| Total Issue Size | ₹100 crore |
| Mode of Issue | Private Placement |
| Listing | Proposed on NSE |
| Tenure | 36 months |
| Coupon Rate | 10.25% |
| Interest Payment | Monthly |
Principal Repayment Schedule
| Repayment Period | Principal Amount Repaid (%) |
|---|---|
| End of 24 Months from Allotment | 30% |
| End of 30 Months from Allotment | 30% |
| End of 36 Months from Allotment | 40% |
The secured NCDs will be backed by a first-ranking exclusive mortgage over specific land parcels owned by the company. These assets will be finalised upon completion of a valuation exercise and must meet the security coverage norms prior to the deemed date of allotment. This capital raising forms part of Patel Engineering’s broader financial strategy for FY26, which already includes securing board approval for a larger ₹200 crore NCD issuance in flexible tranches, including rated/unrated and secured/unsecured variants. The move underscores the company’s intent to bolster liquidity and support its expanding project execution pipeline.
Company Background
Patel Engineering Ltd is a publicly listed infrastructure and construction company engaged in executing large-scale civil engineering projects across India. The company is listed on both the National Stock Exchange (NSE: PATELENG) and the Bombay Stock Exchange (BSE: 531120). As of March 31, 2025, Patel Engineering boasts a robust order book worth ₹15,218 crore (including L1 contracts), with strong diversification across hydroelectric, irrigation, tunnels, roads, and other civil infrastructure sectors.
REF: https://nsearchives.nseindia.com/corporate/PATELENG_25072025105803_SEIntimationOutcome.pdf
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