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Sanghi Industries raised Rs 500 crore on Tuesday through the allotment of 5,000 Non-Convertible Debentures, with each of them having a face value of Rs 10 lakh.

The NCDs are unrated, unlisted, and redeemable.

The debentures will have a three-year term and a coupon rate of 12 percent per annum. Interest on these will be paid on a monthly basis.

Security of these debentures will be through mortgaging overall fixed and current assets of the company and by exclusively pledging 6.78 crore equity shares held by Ravi Sanghi, Samruddhi Investors Services Pvt. Ltd., and Flarezeal Solutions LLP.

In the event of a default, the company will be liable to pay the debenture holders a default interest calculated at 2 percent per annum on the secured obligations, compounded monthly until 90 days from the date of default and 1 percent per month thereafter.

The Gujarat-based cement manufacturer reported a net loss of Rs 44 crore during the September quarter as compared to a net profit of Rs 4.45 crore during the same period last year.

In September, India Ratings and Research placed the company's rating on "Ratings Watch Negative" after downgrading the company's long-term issuer rating to IND BB+ from IND BBB.

Shares of Sanghi Industries ended 0.7 percent higher at Rs 66.70.