Kuantum Papers raises $10.6M in debt at 12.7% yield
What's the deal? Kuantum PapersDealroom has a profile for this one. Try Dealroom → has raised Rs 100 crore (about $10.6 million) through a private placement of unlisted, senior, secured non-convertible debentures (NCDs). The issuance comprises 10,000 debentures with a face value of Rs 1,00,000 each, allotted on September 3, 2026, and maturing on June 2, 2030.
The terms: The debentures carry a 9.70% monthly coupon plus a 3.00% annual redemption premium, producing an effective annual yield of 12.70% for investors through 2030.
How it's secured? Kuantum has provided a security cover of 1.50x its redemption and coupon obligations. That includes a subservient charge on current and movable fixed assets, personal guarantees from Jagesh Kumar Khaitan and Pavan Khaitan, a shortfall undertaking from Kapedome EnterprisesDealroom has a profile for this one. Try Dealroom →, and a lien-marked fixed deposit equal to 5% of the total, held with Axis Trustee ServicesDealroom has a profile for this one. Try Dealroom →.
What could go wrong? The debt comes with trigger clauses. A credit rating downgrade lifts the coupon by 0.25% per notch, and delayed interest or principal payments beyond three months carry a 2.00% annual default penalty. The recurring monthly payments and the 2030 redemption will hinge on the company's operating cash flows.
The signal: The raise sits in the smaller tier of funding rounds by size, and its structure reflects how mid-sized firms increasingly tap private debt markets for liquidity without diluting equity — accepting a double-digit yield and layered guarantees in exchange for fresh capital.
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