Deccan Cements ₹660 crore plan 2026 to cut debt

What Deccan Cements has approved

Deccan Cements Limited has cleared a fundraising plan of up to ₹660.00 crore through two instruments: Non-Convertible Debentures (NCDs) of up to ₹557.00 crore and Compulsorily Convertible Debentures (CCDs) of up to ₹103.00 crore. The company has said the proceeds are intended to repay outstanding term loans and related liabilities. A key part of the plan is the CCD issue on a preferential basis, which required shareholder approval through a postal ballot process. The company operates in cement manufacturing, including clinker, Portland cement, slag cement and related products. It also has power generation operations through hydel and wind sources, as per the provided company profile.

Why the CCD issue is central to the plan

The CCD portion of the fundraising is specifically linked to debt repayment, including secured term loans from State Bank of India (SBI). Deccan Cements announced that it plans to raise ₹103 crore by issuing 14,40,559 CCDs to non-promoter entities. The outstanding secured term loan from SBI was stated at ₹330.91 crore as of May 14, 2026. The company expects that repaying debt could lower interest costs, based on the stated purpose of the fundraise. The CCDs are to be compulsorily converted into equity shares within 18 months, at a 1:1 ratio.

Shareholder vote and approval outcome

Shareholders approved the CCD issuance through a special resolution with 99.9977% of votes in favour. Voting for the postal ballot process was scheduled from May 15, 2026 to June 13, 2026. The result date was listed as June 14, 2026. KFin Technologies Limited (KFINTECH) was named as the e-voting service provider and Registrar and Transfer Agent for the process. Mr. Vikas Sirohiya, Practicing Company Secretary, was appointed as the scrutinizer for the postal ballot and e-voting process.

Key terms of the CCDs (₹103 crore)

The company disclosed that 14,40,559 CCDs would be issued at ₹715 each to five identified investors. The CCDs carry a coupon rate of 6% per annum payable monthly and are unsecured. Each CCD is to convert into one equity share of face value ₹5 at a premium of ₹710, within 18 months from the date of allotment. The CCDs are proposed to be allotted within 15 days from the date of passing of the special resolution. The CCDs are also stated to be not proposed to be listed.

Who the identified CCD investors are

The proposed CCD allotment is to five funds: Neo Credit Opportunities Fund I, Neo Special Credit Opportunities Fund, Neo Special Credit Opportunities Fund II, Neo Special Credit Opportunities Fund II A, and Neo Prime Fund. The issuance is described as being to non-promoter entities. The company stated that the issuance will not result in any change in control. Post conversion, the allottees are expected to collectively hold 9.33% of the post-issue share capital.

Dilution and changes in shareholding

Deccan Cements stated that the CCD conversion will result in 9.33% equity dilution for existing shareholders upon conversion. Promoter and promoter group holding is expected to decrease from 56.25% to 51.00% post-conversion. Public shareholding is expected to increase to 49.00%. The company has framed the capital raise as a step to manage its debt obligations, with SBI term loans highlighted as a major liability in the disclosures.

NCD fundraise: size, tenor, security, and coupon schedule

The larger component of the fundraising is the NCD issue of up to ₹557.00 crore, with investors stated as yet to be finalized. The NCDs are expected to have a door-to-door tenor of 72 months from the date of allotment. The expected allotment timeline was stated as on or before June 30, 2026 (or another mutually agreed date). The NCDs are proposed to be secured by a first charge over the company’s plant land and immovable fixed assets, including those of its subsidiary, and also a first charge over additional land at Regupalem Village, Visakhapatnam, Andhra Pradesh. Additional security includes a first charge on movable assets and a second charge on all current assets of Deccan Cements and its subsidiary.

Timeline of events disclosed by the company

The board meeting approving the fundraising plan was held on May 14, 2026. The cut-off date for determining eligible members for the postal ballot was May 8, 2026. The postal ballot notice date was May 14, 2026, and the notice was published in Business Standard (English, All India editions) and Andhra Prabha (Telugu, Hyderabad edition) on May 15, 2026. Voting started on May 15, 2026 at 9:00 a.m. and ended on June 13, 2026 at 5:00 p.m. The result date was listed as June 14, 2026. These steps collectively form the procedural backbone for the CCD issuance.

Stock and company profile datapoints mentioned

The provided text includes multiple share price snapshots for Deccan Cements. One data point says the share price of DECCANCE as on 25th June 2026 is ₹590.75, while another line states the current share price as ₹569.1. Separately, another snapshot lists the stock last traded price as ₹1,024.00 versus a previous close of ₹1,029.50, and also cites a “Current Price” of ₹1,044 along with “High / Low ₹ 1,184 / 550”. The same snapshot lists Market Cap at ₹1,463 crore, P/E at 72.9, Book Value at ₹516, Dividend Yield at 0.06%, ROCE at 1.53%, ROE at 0.75%, and Face Value at ₹5.00. The company is described as incorporated in 1979 and headquartered in Hyderabad, Telangana.

Conclusion

Deccan Cements’ disclosed fundraising plan combines a secured NCD issuance of up to ₹557 crore and an unsecured CCD issuance of up to ₹103 crore, with the stated goal of repaying term loans and related liabilities, including SBI exposure of ₹330.91 crore as of May 14, 2026. The CCD issue has already received near-unanimous shareholder approval, and conversion within 18 months implies 9.33% post-conversion ownership for the new allottees and a reduction in promoter holding from 56.25% to 51.00%. The next operational milestones, as disclosed, are the CCD allotment within 15 days of the special resolution and the expected NCD allotment on or before June 30, 2026 (or another mutually agreed date).