Ucal Ltd to raise Rs 50 crore through issuance of NCDs

Chennai, March 13 (IANS) Ucal Ltd, a leading automotive component maker, has announced its plans to raise up to Rs 50 crore debt through the issuance of non-convertible debentures (NCD). The Board of Directors has approved raising Rs 30 crore from fully-paid NCDs and up to Rs 20 crore from partly-paid NCDs.

The fully paid NCDs will mature in 30 months from the deemed date of allotment with a coupon rate of 11.50 per cent per annum. The partly paid NCDs, intended for working capital needs, will mature in 13 months from the deemed date of allotment, also carrying a coupon rate of 11.50 per cent per annum.

This move is aimed at strengthening the company’s financial position and supporting its growth strategy in the automotive component industry. Ucal Ltd continues to demonstrate its commitment to innovation and expansion in the market, ensuring sustainable business operations.

The company’s decision to raise debt through NCDs showcases its confidence in the market and its ability to effectively manage capital requirements for future endeavors. This strategic move is expected to provide the necessary financial resources to drive Ucal Ltd’s growth trajectory and enhance its competitive edge in the industry.