Sorry, your browser does not support JavaScript! Marwadi Shares and Finance Limited

Zero-Coupon Non-Convertible Debentures (ZCNCD)

Non-Convertible Debentures Issue Highlight

Tenure24 months from the Deemed Date of Allotment
Face ValueRs. 1,00,000/- Per Debenture
Tranche SizeRs.70 Crores + Rs.70 Crores Greenshoe Option
Mode of IssuePrivate placement 
Types of instrumentSenior, unsecured, rated, listed, redeemable, taxable, non-convertible debentures
Minimum Application ValueRs. 1 Lakh & in it's Multiple
Listing OnBombay Stock Exchange (BSE)

1. What is ZCNCD?
Zero-coupon non-convertible debentures (ZCNCDs) are debt instruments with a fixed tenure issued by companies to raise
money for business purposes.

2. What is the category of this instrument?
Senior, unsecured, rated, listed, redeemable, taxable, Zero Coupon Non-Convertible Debentures.

3. What will be the mode of issue?
The ZCNCD will be issued in DEMAT mode only it is on a Private Placement Basis.

4. What is the total issue size?
The total issue size is Rs. 140.00 Crores.

5. What is the face value of the ZCNCD?
The Face Value and Issue Price per ZCNCD is Rs. 1 Lacs.

6. What is the Interest Rate of ZCNCD?
11% p.a, payable at Redemption only i.e. on completion of 24 months.

7. What is the tenure of the ZCNCD?
The ZCNCD will be issued for 24 months from the date of allotment.

8. What is the interest rate in case of delay/default in interest payment?
Coupon Rate Plus Additional interest of at least @ 2% p.a. on the outstanding Principal amount.

9. Is it possible to make premature redemption of the ZCNCD?
It is listed on the BSE Exchange and investors can exit at any point in time.

10. Can the debentures be transferred off the market?
Yes, the debentures can be transferred off-market by following the Depository Participant’s processes.

11. Can the ZCNCD be pledged with the bank and Overdraft facilities be availed?
Depending on the banks’ policies, generally, the banks allow Overdraft facilities against ZCNCD.

12. What category of investors can invest in ZCNCD?
The following are eligible categories;
1. Companies, BodyCorporate, Financial Institutions, NBFCs, StatutoryCorporations;
2. Commercial Banks and Regional Rural Banks;
3. Provident funds/ Superannuation funds or gratuity funds, private trusts, as may be permitted by respective rules and
guidelines of such funds/ trusts;
4. Registered Society;
5. Partnership firms & LLPs;
6. Individuals and HUFs;
7. High Net worth Individuals;
8. Insurance Companies;
9. Mutual Funds;
10. Portfolio Manager registered with SEBI;
11. Any other investor permitted to invest in debentures of Indian body corporate
NOTE: No Identified Person shall be entitled to renounce his right to subscribe to the ZCNCD to any person. Only the
person(s) to whom this Placement Memorandum is circulated by the Company shall be eligible to apply for ZCNCD

13. What is the rating for ZCNCD?
Credit Rating of A by Infomerics Valuation & Ratings Pvt. Ltd..

14. What are the objects of the ZCNCD Issue?
To fund the Algo-based arbitrage/jobbing business activities of the Company.

15. Can the ZCNCD be placed with brokers towards margin requirements in securities market transactions?

16. Are there any debenture trustees?
Yes. MITCON Credential Trusteeship Services Limited is appointed as a debenture trustee.

17. Do the ZCNCD holders carry any voting rights?
No, the ZCNCD holders do not have voting rights.

18. Once the bond matures, how do I get my money back?
The money will automatically get remitted to your bank account on the date of maturity.

19. Is a Demat account needed for ZCNCD?
Having a Demat account to invest in ZCNCDs is essential as most debentures are issued in dematerialized mode.

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