Description

BSE announces amendments to Series II Debentures of Lucina Land Development Limited, including increased issue size from Rs. 750 crores to Rs. 840 crores and revised end-use of proceeds.

Summary

BSE has issued an update regarding amendments to the debt securities of Lucina Land Development Limited. The key changes include an increase in the Series II Debentures issue size from Rs. 750 crores to Rs. 840 crores (84,000 NCDs of Rs. 1 lakh each), and a comprehensive revision of the end-use of proceeds across Series I and Series II debentures. The amendments redistribute funds among debt repayment, construction costs for multiple projects, and general corporate purposes.

Key Points

  • Series II Debentures issue size increased from 75,000 NCDs to 84,000 NCDs (face value Rs. 1,00,000 each)
  • Total Series II issue size enhanced from Rs. 750 crores to Rs. 840 crores
  • Series II Debentures remain senior, secured, non-cumulative, redeemable, taxable, rated, listed, non-convertible debentures
  • No changes proposed to Series I Debentures already issued and allotted on January 30, 2025
  • Unutilized amounts under Series I Green Shoe Option automatically available for Series II Debentures
  • Significant reallocation of fund utilization across projects and purposes
  • Debt repayment reduced from Rs. 50 crores to Rs. 48.78 crores (actual outstanding amount)
  • General corporate purposes allocation increased to Rs. 361.22 crores

Regulatory Changes

Issue Size Amendment:

  • Previous: 75,000 NCDs aggregating Rs. 750 crores
  • Revised: 84,000 NCDs aggregating Rs. 840 crores
  • Increase of 9,000 NCDs representing additional Rs. 90 crores

End-Use of Proceeds - Revised Allocation:

  1. Repayment of Existing Financial Indebtedness: Rs. 48.78 crores (reduced from originally earmarked Rs. 50 crores to reflect actual outstanding amount)

  2. Project 1 Construction Costs: Rs. 250 crores (reduced from Rs. 450 crores)

  3. Project 2 Construction Costs: Rs. 50 crores (unchanged)

  4. Project 3 Construction Costs: Rs. 75 crores (increased from Rs. 65 crores)

  5. Project 4 Construction Costs: Rs. 50 crores (new allocation)

  6. Additional Construction Costs (Projects): Rs. 115 crores (new allocation)

  7. General Corporate Purposes: Rs. 361.22 crores (new significant allocation)

Compliance Requirements

  • All amendments require Debenture Trustee approval as per existing provisions
  • Series I Debentures issued on January 30, 2025 remain unchanged and unaffected
  • Issuer must utilize proceeds strictly as per revised end-use allocation
  • Any deviation from stated purposes requires prior approval from Debenture Trustee
  • Debenture holders and market participants should note the material changes to issue terms

Important Dates

  • January 30, 2025: Series I Debentures issued and allotted (no changes to these)
  • October 13, 2025: Circular date announcing amendments to Series II Debentures
  • Redemption schedule details referenced but not provided in the circular excerpt

Impact Assessment

Market Impact: Medium - The amendments represent material changes to the debenture issue structure, with a 12% increase in issue size. The significant reallocation toward general corporate purposes (Rs. 361.22 crores) and away from specific project construction indicates a strategic shift in fund deployment.

Issuer Impact: The increased issue size provides Lucina Land Development Limited with additional capital flexibility. The reallocation suggests potential changes in project timelines or priorities, with greater emphasis on operational flexibility through general corporate purposes allocation.

Investor Impact: Existing and prospective Series II debenture holders should evaluate the revised end-use, particularly the substantial allocation to general corporate purposes which provides less specificity than project-tied funding. The reduction in Project 1 construction costs from Rs. 450 crores to Rs. 250 crores (44% reduction) is noteworthy.

Security Impact: No changes indicated to the secured nature of the debentures, but investors should verify if the security coverage ratios are maintained with the increased issue size.

Impact Justification

Material changes to debenture issue terms affecting specific issuer and its debenture holders, including 12% increase in issue size and significant reallocation of fund utilization