Issue Size (Base)

The Base Issue Size for a Non-Convertible Debenture (NCD) is the minimum amount a company aims to raise, with SEBI regulations usually requiring a minimum of ₹100 crore. It represents the initial target, often accompanied by a "Green Shoe Option" allowing retention of oversubscriptions up to a specific limit.

Key Details regarding NCD Base Issue Size:

• Definition: The minimum amount a company plans to raise in an NCD public issue.
• Minimum Threshold: SEBI mandates a minimum base size of ₹100 crore for public issues of debt securities.
• Retention of Oversubscription: Issuers often retain oversubscription up to 100% or more of the base issue size via a "Green Shoe Option".
• Minimum Subscription: If the company does not receive at least 75% of the base issue size, the entire amount must be refunded.
• Allotment: Generally done on a first-come, first-served basis.

For example, a company might announce a Base Issue of ₹100 crore with an option to retain oversubscription up to an additional ₹400 crore, bringing the total potential issue size to ₹500 crore.