Sammaan Capital to buy back NCDs to strengthen liquidity, balance sheet

The company's ALCO has approved repurchasing NCDs maturing up to June 2026 at par value to reinforce its balance sheet and maintain prudent liquidity and asset-liability management

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Sammaan Capital has announced an offer to purchase its non-convertible debentures (NCDs) as part of its ongoing efforts to strengthen liquidity and maintain a balanced asset-liability profile, the company said in an exchange filing.

 

What does the NCD repurchase plan include? 

The company stated that its Asset Liability Management Committee (ALCO) has approved the repurchase of NCDs maturing up to June 30, 2026, at par value through exchange transactions. The repurchased debentures will be held as treasury stock until maturity.

 

The offer excludes holders of subordinated debt, the company clarified.

 

Why is Sammaan Capital repurchasing its debt? 

Sammaan Capital said the initiative reflects its commitment to maintaining a “disciplined approach to liquidity and liability management through proactive Asset-Liability Management (ALM) practices.”

 

It added that the company continues to maintain a robust liquidity buffer sufficient to meet near- to mid-term debt obligations.

 

“This offer aligns with our philosophy of prudence and proactive ALM management. By utilising surplus liquidity to prepay or buy back outstanding debt instruments, we are reinforcing our financial flexibility and balance sheet strength,” the company said in a statement.

 

Shares of Sammaan Capital closed 0.4 per cent higher at Rs 177 per share.