Godrej Industries raises Rs 1,000 crore through NCDs in two tranches

Godrej Industries Ltd, the holding company of the Godrej Group, on Tuesday raised Rs 1,000 crore in two tranches through unsecured redeemable non-convertible debentures (NCDs) from the domestic debt capital market, with varying tenors, sources said.

 

The company raised Rs 500 crore by selling 3.5-year papers at a coupon of 8.1 per cent to investors. Additionally, it raised another Rs 500 crore by selling 5-year papers at a coupon of 8.15 per cent, sources aware of the development said.

 

Both issuances had a base size of Rs 250 crore and a green shoe option of another Rs 250 crore. The NCDs have been rated AA+ by domestic rating agencies CRISIL and ICRA.

 

According to the information memorandum, the coupon will increase by 25 basis points (bps) for every notch of downgrade in the credit rating of the NCDs. Further, the coupon will be restored to earlier levels if the rating is upgraded back to AA+.

 

The company will use the proceeds of the issuance for business purposes, investments in body corporates, repayment or prepayment of certain loans, and general corporate purposes.

 

AK Capital Services was the arranger of the NCD issuance, and Catalyst Trusteeship was the debenture trustee.

 

Godrej Industries is the holding company for Godrej Group entities, with shareholding in Godrej Consumer Products, Godrej Agrovet Ltd, and Godrej Properties. Godrej Industries is one of India’s leading manufacturers of oleochemicals, producing more than 100 chemicals for use in over two dozen industries. It also manufactures edible oils, vanaspati, and bakery fats.