Format For Resolution for Issue of Non-Convertible Debenture

A resolution for the issue of non-convertible debentures (NCDs) with equity warrants on a rights basis is a formal decision made by a company's board of directors to raise capital by issuing NCDs along with equity warrants to existing shareholders on a pro-rata basis.
Typically, NCDs are debt instruments that are issued by companies to raise capital. They pay fixed interest to investors, but they cannot be converted into equity shares. Equity warrants, on the other hand, are options that allow the holder to purchase a specified number of equity shares at a fixed price within a certain time period.
When a company issues NCDs with equity warrants on a rights basis, it is offering existing shareholders the opportunity to purchase the NCDs and equity warrants in proportion to their current shareholding. This is known as a "rights issue."
The resolution for the issue of NCDs with equity warrants on a rights basis will typically include details such as the terms and conditions of the NCDs and equity warrants, the rights entitlement ratio (i.e., the number of NCDs and equity warrants that shareholders are entitled to purchase per share held), and the pricing of the NCDs and equity warrants.
The resolution is passed by the board of directors after due consideration of the financial position of the company and the terms and conditions of the NCDs and equity warrants. The resolution is then placed before the shareholders at the general meeting of the company for their approval.
Non-convertible debentures
Equity warrants
Rights issue
Capital raising
Debt instruments
Pro-rata basis
Fixed interest
Shareholders
Board of Directors
General meeting
Financial position
Approval
NCDs and equity warrants terms
NCDs and equity warrants pricing

Please login to review

Related Services

Silver