Description

Amendment to Series II Debentures issue size increased from INR 750 Crores to INR 840 Crores and revised end use of proceeds for construction projects.

Summary

Lucina Land Development Limited has announced amendments to its Series II Debentures issuance program. The issue size has been increased from INR 750 Crores to INR 840 Crores (from 75,000 to 84,000 debentures of face value INR 1 Lakh each). Significant changes have been made to the end use of proceeds, with revised allocations for debt repayment, construction costs across multiple projects, and general corporate purposes. No changes are proposed to Series I Debentures already issued on January 30, 2025.

Key Points

  • Series II Debentures issue size increased by INR 90 Crores (12% increase) to INR 840 Crores
  • Number of debentures increased from 75,000 to 84,000 units
  • Each debenture has face value of INR 1,00,000
  • Debentures are senior, secured, non-cumulative, redeemable, taxable, rated, listed, non-convertible
  • Unutilized amounts from Series I Green Shoe Option automatically available for Series II
  • Series I Debentures issued on January 30, 2025 remain unchanged
  • Revised fund utilization across multiple construction projects and corporate purposes

Regulatory Changes

No regulatory framework changes. This is a company-specific amendment to previously disclosed debenture terms requiring updated disclosure to the exchange and debenture holders.

Compliance Requirements

  • Company must obtain Debenture Trustee approval for any other purposes not specified in the end use
  • Funds must be utilized strictly as per the revised allocation schedule
  • Debenture holders should be informed of material changes to issue terms
  • Compliance with listing obligations for debt securities on BSE

Important Dates

  • January 30, 2025: Series I Debentures issued and allotted (historical reference)
  • October 13, 2025: Circular date for amendments disclosure

Impact Assessment

Impact on Debenture Holders:

  • Existing Series I debenture holders unaffected as no changes proposed to their securities
  • Potential Series II investors now have clarity on increased issue size and revised fund deployment
  • Changes reflect company’s updated capital requirements and project priorities

Fund Utilization Changes:

  • Debt repayment reduced from INR 50 Crores to INR 48.78 Crores (INR 1.22 Crores less than planned)
  • Project 1 construction allocation reduced from INR 450 Crores to INR 250 Crores (44% reduction)
  • Project 3 construction allocation increased from INR 65 Crores to INR 75 Crores (15% increase)
  • New allocation: Project 4 construction costs of INR 50 Crores
  • New allocation: Additional construction costs across projects of INR 115 Crores
  • New allocation: General corporate purposes of INR 361.22 Crores (significant increase in operational flexibility)

Key Observation: The INR 1.22 Crores difference in debt repayment (originally earmarked INR 50 Crores, actual outstanding INR 48.78 Crores) has been reallocated to general corporate purposes, providing the company greater financial flexibility for operations and unforeseen requirements.

Impact Justification

Material changes to debenture issue size and fund allocation affecting existing and potential debenture holders of Lucina Land Development Limited