Emerald Leisures Ltd (507265)

Emerald Leisures Ltd has scheduled a Board of Directors meeting on October 1, 2026, to evaluate and approve a fundraising proposal. The fundraise may take place via equity shares, convertible warrants, preferential issue, private placement, rights issue, or other instruments. The company currently carries high debt of Rs 148 Cr and a negative net worth of Rs -84 Cr on TTM revenues of Rs 16 Cr, making capital infusion critical. The trading window for designated persons has been closed from September 23, 2026.

• Board meeting scheduled on October 1, 2026, to consider fundraising options
• Instruments under review include equity shares, convertible warrants, preferential issue, or rights issue
• A dedicated committee may be constituted to structure and coordinate the proposed fundraise
• Trading window closed from September 23, 2026, until 48 hours after the meeting

Promoter Nikhil Vinod Mehta has created a pledge on 38,30,290 equity shares (25.50% of total share capital, representing ~82% of his 31.12% holding) in favour of Beacon Trusteeship / Lighthouse Canton Alternatives. The pledge serves as security for Rs 105 Crore of 10% secured unlisted unrated Non-Convertible Debentures (NCDs) issued by Emerald Leisures. The Rs 105 Crore borrowing—significant against TTM revenue of Rs 16 Crore—is earmarked for Club Expansion (Rs 25 Cr), debt refinancing of Aditya Birla Capital (Rs 20 Cr), SRA expenses (Rs 30 Cr), general corporate purposes (Rs 25 Cr), and transaction costs (Rs 5 Cr).

• Pledge created over 38,30,290 shares (25.50% of total equity) by promoter Nikhil Vinod Mehta on 01.09.2026
• Security pledged against issuance of Rs 105 Crore of 10% Secured Unlisted Unrated NCDs
• Underlying share collateral value stood at Rs 137.89 Crore, implying an asset cover ratio of 1.31x
• Proceeds deployed across Rs 25 Cr club expansion, Rs 20 Cr debt repayment, Rs 30 Cr SRA expenses, and Rs 25 Cr general corporate purposes

Promoter Jaydeep Vinod Mehta has pledged 38,30,323 shares, representing 25.50% of Emerald Leisures' total share capital (and ~81.9% of his personal 31.13% holding), to secure a Rs 105 Cr unlisted NCD issue by the company. The Rs 105 Cr borrowing represents over 6.5x the company's TTM revenue of Rs 16 Cr, raised against an existing debt base of Rs 148 Cr and negative net worth of Rs -84 Cr. Proceeds are earmarked for SRA expenses (Rs 30 Cr), club expansion (Rs 25 Cr), general corporate purposes (Rs 25 Cr), debt refinancing of Aditya Birla Capital (Rs 20 Cr), and transaction costs (Rs 5 Cr).

• Promoter Jaydeep Vinod Mehta created a pledge over 38,30,323 shares (25.50% of total equity) on August 18, 2026.
• Pledge secures Rs 105 Cr of 10% Secured Unlisted Unrated Non-Convertible Debentures (NCDs) issued by the company.
• Pledged collateral is valued at Rs 137.89 Cr, establishing an asset cover ratio of 1.31x.
• Use of proceeds includes Rs 30 Cr for SRA expenses, Rs 25 Cr for club expansion, and Rs 20 Cr for refinancing debt from Aditya Birla Capital.

Promoter Jaydeep Vinod Mehta has pledged 38,30,323 shares (25.50% of total equity capital, representing 81.9% of his personal 31.13% holding) to secure ₹105 crore of 10% unlisted, unrated Non-Convertible Debentures (NCDs) issued by Emerald Leisures. The ₹105 crore fundraise (which compares to TTM revenue of ₹16 crore) is earmarked for SRA expenses (₹30 crore), club expansion (₹25 crore), general corporate purposes (₹25 crore), Aditya Birla Capital debt repayment (₹20 crore), and transaction costs (₹5 crore). With the company carrying a negative net worth of ₹-84 crore and existing debt of ₹148 crore, the new debt structure increases leverage while heavily encumbering promoter equity.

• Promoter Jaydeep Vinod Mehta pledged 38,30,323 shares representing 25.50% of total equity (81.9% of his holding).
• Pledge backs ₹105 crore of 10% Secured Unlisted Unrated Non-Convertible Debentures with a security cover of 1.31x (share value ₹137.89 crore).
• Fund utilization comprises ₹25 crore for Club Expansion, ₹30 crore for SRA expenses, and ₹20 crore to refinance existing debt.
• Lender is Lighthouse Canton Alternatives Asset Manager Private Limited with Beacon Trusteeship Limited acting as Debenture Trustee.

Emerald Leisures has approved the issuance of 1,050 secured, unrated, and unlisted Non-Convertible Debentures (NCDs) totaling Rs 105 Crores. The company has immediately allotted the first tranche of 650 NCDs, aggregating to Rs 65 Crores. This fundraise is highly significant, representing over 6x the company's TTM revenue of Rs 17 Crores. The NCDs carry a face value of Rs 10 Lakh each and feature a structured repayment plan starting at 18 months.

• Total NCD issuance approved for Rs 105 Crores across multiple tranches
• First tranche of 650 NCDs (Rs 65 Crores) fully allotted on August 11, 2026
• Face value per NCD set at Rs 10,00,000
• Repayment schedule structured as 50% at Month 18 and 50% at Month 36
• Fundraise amount of Rs 105 Cr is approximately 617% of TTM revenue

Emerald Leisures has approved the allotment of the first tranche of ₹55 Cr out of a total ₹105 Cr private placement of Secured, Unlisted, Non-Convertible Debentures (NCDs). This fundraise is massive relative to the company's TTM revenue of ₹17 Cr and its current negative net worth of -₹84 Cr. The NCDs carry a 10% annual coupon plus a 6% compounded redemption premium, reflecting a high cost of capital. Repayment is staggered, with 50% due in 18 months and the remainder in 36 months.

• Total issue size of ₹105 Cr via 1,050 NCDs with a face value of ₹10,00,000 each
• Immediate allotment of ₹55 Cr (550 NCDs) completed on August 4, 2026
• High cost of debt with a 10% p.a. monthly coupon and a 6% p.a. redemption premium compounded quarterly
• Staggered repayment schedule with 50% principal due at 18 months and 50% at 36 months
• Secured by mortgage/hypothecation/pledge of company assets

Emerald Leisures has approved the allotment of Rs 55 crore worth of Secured, Unlisted NCDs as the first tranche of a total Rs 105 crore private placement. This fundraise is massive relative to the company's TTM revenue of Rs 17 crore (~617%) and its current market cap of Rs 273 crore. The debt carries a high cost, featuring a 10% annual coupon payable monthly plus a 6% annual redemption premium compounded quarterly. This capital infusion comes at a time when the company reports a negative net worth of Rs -84 crore and TTM losses of Rs -9 crore.

• Allotted 550 NCDs worth Rs 55 crore on August 4, 2026, as part of a Rs 105 crore total issue.
• High cost of capital with a 10% p.a. monthly coupon and a 6% p.a. redemption premium compounded quarterly.
• Tenure of 36 months with a structured repayment of 50% at 18 months and 50% at 36 months.
• Total issue size of Rs 105 crore represents over 6x the company's TTM revenue of Rs 17 crore.
• Secured by mortgage, hypothecation, or pledge of company assets in favor of the Debenture Trustee.

Emerald Leisures Ltd has scheduled a board meeting on August 4, 2026, to approve the allotment of Secured, Unlisted, Unrated, Redeemable Non-Convertible Debentures (NCDs) on a private placement basis. This fundraise is critical as the company currently operates with a negative net worth of ₹84 Cr and a high debt load of ₹148 Cr. With TTM revenue at only ₹17 Cr, the debt-to-revenue ratio stands at approximately 8.7x. The specific quantum of the fundraise has not yet been disclosed.

• Board meeting scheduled for August 4, 2026, to approve NCD allotment.
• Instruments are specified as Secured, Unlisted, Unrated, and Redeemable.
• Company reported a net loss of ₹8.52 Cr for FY26.
• Existing debt of ₹148 Cr significantly exceeds the TTM revenue of ₹17 Cr.
• Net worth remains deeply negative at -₹84 Cr as per latest financial context.