Module manufacturer Alpex Solar’s board of directors has approved raising ₹1.25 billion (~$13.8 million) through the issuance of secured, redeemable, unlisted, unrated, and non-convertible debentures (NCDs).

Alpex will issue 12,500 NCDs, each with a face value of ₹100,000 (~$1,107.83). The NCDs will carry a coupon rate of 14.75% per annum, payable monthly.

The NCDs carry an extra layer of security in the form of subservient charges. It includes a subservient mortgage by Alpex Solar and the promoters, Ashwai Sehgal and Monica Sehgal, over the identified immovable properties.

The repayment of the principal amount of the NCDs will commence after the expiry of the 18-month principal moratorium from the date of allotment. Of the principal amount of the NCDs, 30% will be repaid in six equated monthly instalments post the principal moratorium. The balance 70% will be repaid in 12 equated monthly instalments.

The debentures will be allotted within one month of the board meeting and will mature within 36 months of allotment.

In October this year, Alpex Solar raised ₹2.6 billion (~$29.27 million) through a preferential issue of 2.15 million equity shares and warrants. The funds will be utilized to support the company’s plans to transform Alpex into an integrated solar cell and module manufacturer.

In the same month, the company announced plans to invest ₹31.36 billion (~$353.77 million) to upgrade its 2.2 GW cell manufacturing facility from Mono PERC to TOPCon in Kosi Kotwan, Uttar Pradesh. Alpex said adopting the TOPCon manufacturing approach will enable it to avoid future conversion costs, factory downtime, and associated revenue loss that could come from a phased upgrade.

In May, Alpex, in a consortium with NVNR Power & Infra, secured a 70 MW solar engineering, procurement, and construction contract from the Central Mine Planning and Design Institute, a subsidiary of Coal India. The project will be at Nandan Washery in the Kanhan Area, within the Western Coalfields region of Nagpur, Maharashtra.