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Alpex Solar Approves Rs 125 Crore Fundraise via Non-Convertible Debentures

Solar module manufacturer Alpex Solar has approved plans to raise up to Rs 125 crore through the private placement of secured, redeemable, unlisted, and unrated non-convertible debentures (NCDs) to support its ongoing business expansion.

According to a regulatory filing, the proposed issuance will comprise up to 12,500 NCDs, each with a face value of Rs 1 lakh, carrying a coupon rate of 14.75% per annum, payable on a monthly basis.

The debentures will have a tenure of 36 months from the date of allotment, including a principal moratorium of 18 months. Following the moratorium, 30% of the principal will be repaid in six equal monthly instalments, with the remaining 70% to be repaid over 12 equal monthly instalments, the filing stated.

The NCDs will be secured by a subservient mortgage on identified immovable properties of the company, along with additional subservient mortgages provided by promoters. The security package also includes a charge by way of hypothecation on specified movable assets. Personal guarantees will be extended by key promoters, including Ashwani Sehgal and Monica Sehgal.

The proceeds from the fundraise are intended to meet Alpex Solar’s business requirements as the company continues to expand its operations across solar PV modules, solar cells, EPC services, solar pumps, and aluminium frames. The company currently operates manufacturing facilities in Uttar Pradesh and Madhya Pradesh.