Deccan Cements Board Approves ₹660 Cr NCD & CCD Issuance to Repay Term Loans

Deccan Cements Limited has announced that its Board of Directors, at a meeting held on May 14, 2026, approved a comprehensive fundraising plan to raise up to ₹660.00 Crores through the issuance of Non-Convertible Debentures (NCDs) and Compulsorily Convertible Debentures (CCDs) on a private placement basis. The proceeds are intended to repay outstanding term loans and related liabilities. As part of the approval, the Board also initiated the postal ballot process to seek shareholder consent for the CCD issuance of up to ₹103.00 Crores, with voting scheduled from May 15, 2026, to June 13, 2026. The Postal Ballot Notice was subsequently published in Business Standard (English – All India Editions) and Andhra Prabha (Telugu – Hyderabad Edition) on May 15, 2026, with KFin Technologies Limited (KFINTECH) designated as the e-voting service provider and Registrar & Transfer Agent for the process.

NCD Issuance Details

The NCD component constitutes the larger portion of the fundraise at up to ₹557.00 Crores, with investors yet to be finalized. The NCDs will carry a door-to-door tenor of 72 months from the date of allotment, and are expected to be allotted on or before June 30, 2026, or such other date as may be mutually agreed. The instruments will be secured by a first charge over the company's plant land and all immovable fixed assets, including those of its subsidiary, as well as a first charge over additional land at Regupalem Village, Visakhapatnam, Andhra Pradesh. Additional security includes a first charge on movable assets and a second charge on all current assets of Deccan Cements and its subsidiary. The coupon structure for the NCDs is tiered as follows:

Period Coupon Rate Year 1 8% p.a. payable monthly Year 2 10% p.a. payable monthly Year 3 onwards 12% p.a. payable monthly

The NCD redemption schedule is structured across the final four years of the tenor:

Year Redemption (% of Principal) Frequency Year 3 10% 4 equal quarterly instalments Year 4 20% 4 equal quarterly instalments Year 5 35% 4 equal quarterly instalments Year 6 35% 4 equal quarterly instalments

CCD Issuance and Postal Ballot Details

The CCD component of up to ₹103.00 Crores involves the issuance of 14,40,559 CCDs on a preferential basis to five identified investors at a price of ₹715 per CCD. These instruments are unsecured, carry a coupon rate of 6% per annum payable monthly, and will be compulsorily converted into equity shares within 18 months from the date of allotment. The conversion ratio is 1:1, with each CCD converting into one equity share of face value ₹5 at a premium of ₹710. The CCDs will be allotted within 15 days from the date of passing of the Special Resolution and are not proposed to be listed. Members holding shares in physical or dematerialized form as on the cut-off date of May 8, 2026, are eligible to participate in the e-voting process through the KFINTECH platform.

The following table outlines the key terms of the CCDs:

Parameter Details Issue Size Up to ₹103.00 Crores Number of CCDs 14,40,559 Issue Price ₹715 per CCD Coupon Rate 6% p.a. payable monthly Tenor Up to 18 months Conversion Ratio 1:1 Security Unsecured

Calendar of Events

Mr. Vikas Sirohiya, Practicing Company Secretary, has been appointed as the Scrutinizer to ensure the fair conduct of the postal ballot and e-voting process. The complete schedule for the postal ballot is as follows:

Event Date / Time Board Meeting Date May 14, 2026 Cut-off Date May 8, 2026 Postal Ballot Notice Date May 14, 2026 Newspaper Publication Date May 15, 2026 Voting Start Date & Time May 15, 2026 at 9:00 A.M. Voting End Date & Time June 13, 2026 at 5:00 P.M. Result Date June 14, 2026

Investor Details and Shareholding Impact

The proposed CCD allotment is to five investors — Neo Credit Opportunities Fund I, Neo Special Credit Opportunities Fund, Neo Special Credit Opportunities Fund II, Neo Special Credit Opportunities Fund II A, and Neo Prime Fund. Upon conversion, the allottees will collectively hold 9.33% of the post-issue share capital. The company has stated that the issuance will not result in any change in control. Promoter and promoter group holding is expected to decrease from 56.25% to 51.00% post-conversion, while public shareholding will increase to 49.00%.

Deccan Cements Limited has submitted a formal disclosure to both BSE Limited and the National Stock Exchange of India Limited declaring that its promoters, along with persons acting in concert, did not create any encumbrance on the company's shares during the financial year 2025-26. The declaration was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The disclosure, dated April 2, 2026, was submitted by P. Parvathi, an authorized person representing the promoter and promoter group of deccan cements . The communication addressed to the corporate relationship departments of both stock exchanges confirmed that no encumbrance of shares was made directly or indirectly by the promoters during the specified financial year.

Key Disclosure Details

Particulars Details Regulation Regulation 31(4) of SEBI Takeover Regulations, 2011 Financial Year FY 2025-26 Disclosure Date 02.04.2026 BSE Scrip Code 502137 NSE Trading Symbol DECCANCE Encumbrance Status No encumbrance of shares

The declaration was addressed to the corporate relationship department of BSE Limited at Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai, and the listing department of the National Stock Exchange of India Limited at Exchange Plaza, Bandra-Kurla Complex, Mumbai. Additionally, copies were sent to the audit committee of Deccan Cements Limited at Deccan Chambers, Somajiguda, Hyderabad.

The disclosure confirms compliance with regulatory requirements regarding substantial acquisition of shares and takeovers, providing transparency to shareholders and regulatory authorities about the status of promoter shareholdings during the financial year 2025-26.

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