Lloyds Metals approves ₹680 crore NCD issue at 9.00%

Lloyds Metals and Energy Limited approved the allotment of ₹680 crore in 9.00% senior secured non-convertible debentures on November 5, 2026, adding a fresh private-placement debt tranche due for redemption on October 29, 2029. The issuance forms part of the company’s wider debt-raising approvals for its expansion programme.

What did Lloyds Metals approve on November 5, 2026?

Lloyds Metals and Energy Limited approved the allotment of 68,000 senior, secured, listed, rated, redeemable non-convertible debentures, or NCDs, through a circular resolution of the Committee of the Board of Directors. The allotment was announced under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements regulations.

The NCDs have a face value of ₹1 lakh each, taking the aggregate issue size to ₹680 crore. They were issued on a private-placement basis, meaning they were placed with identified investors rather than offered to the general public. The deemed date of allotment is November 5, 2026.

The securities carry a coupon rate of 9.00% per annum and are scheduled to be redeemed on October 29, 2029. The announcement identifies them as senior, secured, listed, rated and redeemable instruments, which defines their position in the company’s debt structure and their intended listing status.

What are the terms and security arrangements for the NCDs?

The ₹680 crore NCDs carry a fixed annual coupon of 9.00% and have a tenor ending on October 29, 2029. Their face value is ₹1 lakh per debenture, and the 68,000-unit allotment produces the disclosed aggregate amount of ₹680 crore.

The debentures are backed by specified security arrangements. These include a first-ranking assignment over LGRF’s rights and all proceeds under the LGRF Loan Documents. The issue also has a first-ranking charge through a pledge by LGRF over 49% of the shares held by it in Virtus Lloyds.

A second-ranking charge through hypothecation over the movable fixed assets of the BHQ Plant is also part of the security package. The company’s disclosure refers to a detailed annexure for the full terms and security arrangements. It does not provide a separate breakdown of the assets’ value in the information available.

How does this allotment fit Lloyds Metals' debt-raising plans?

Lloyds Metals has built a wider framework for raising debt as it advances its expansion plans in Maharashtra. At its October 14, 2026 board meeting, the company approved the issuance of NCDs of up to ₹3,000 crore in one or more tranches through private placement.

At the same meeting, the board approved U.S. dollar-denominated senior secured notes, bonds or debentures of up to $130 million, with an option to upsize the issue by a further $50 million under Regulation S. The ₹680 crore allotment is a completed transaction, while the ₹3,000 crore approval is an enabling framework for potential future issuances.

The October board meeting also cancelled a previously proposed NCD issuance of up to ₹600 crore that had been approved on September 21, 2026. A separate NCD approval of up to ₹950 crore from the September meeting was left unchanged. The cancellation therefore did not remove all earlier debt-raising approvals.

What other NCD issuances has Lloyds Metals completed in 2026?

Lloyds Metals had previously allotted ₹700 crore of NCDs in August 2026. That issue consisted of 70,000 senior secured listed rated redeemable transferable NCDs with a face value of ₹1 lakh each and a coupon rate of 9.02%.

The August NCDs had a 10-year tenor and were rated IND AA/Stable and CRISIL AA/Stable, according to the disclosed filing history. Those ratings and terms were stated for the August allotment; the available information on the November 5 allotment identifies the new NCDs as rated but does not specify their rating in the provided disclosure.

The company had been financing an expansion programme through debt, with consolidated net debt of about ₹19,000 crore cited in the supplied information. Its successive board approvals and completed allotments show that NCDs remain one of the instruments available for funding requirements alongside potential foreign-currency debt.

Why does the ₹680 crore NCD allotment matter to investors?

The allotment provides Lloyds Metals with a defined debt tranche carrying a known 9.00% annual coupon and a stated repayment date in 2029. For investors assessing the company’s capital structure, the transaction adds ₹680 crore of secured borrowing and sets out the collateral linked to the instrument.

The issuance also follows the company’s broader private-placement approvals, including the ₹3,000 crore NCD framework. This makes the distinction between approved borrowing capacity and actual allotments important. A board approval permits future fundraising subject to terms and conditions, while an allotment confirms that a specific debt tranche has been issued.

The disclosed security package is relevant because the NCDs are senior and secured. The company has identified rights under LGRF Loan Documents, a pledge involving 49% of shares held by LGRF in Virtus Lloyds, and movable fixed assets at the BHQ Plant as components of that package. The filing does not disclose how proceeds from this particular tranche will be deployed.

Conclusion

Lloyds Metals has completed a ₹680 crore private-placement NCD allotment at a 9.00% coupon, with repayment due in October 2029. The issue adds to the company’s debt funding activity and is supported by specified assignments, share pledges and a second-ranking hypothecation charge.

Investors will watch for further issuances under the up to ₹3,000 crore NCD framework, the status of the retained up to ₹950 crore approval, and any use of the approved U.S. dollar-denominated notes facility. The available disclosure does not state a schedule for additional debt allotments or the use of proceeds from the ₹680 crore issue.