OnMobile raises ₹100 cr via NCDs at steep 13.60-13.88% coupon
The debt equals 18% of market cap for a loss-making micro-cap. High yield signals elevated credit risk and likely liquidity needs for gaming pivot.
— 2 earlier stories on Onmobile Global Ltd. →What's new
- Board approved ₹100 cr NCDs in two tranches at 13.60% and 13.88% coupons.
- Three-year notes secured by floating charges and a pledge of Singapore sub shares.
- CFO Radhika Venugopal reappointed for three years.
Why this matters
For a company with a ₹36 cr loss and 18% revenue decline, 13.60-13.88% debt costs indicate tough credit conditions and urgent capital needs. The issuance will raise debt/equity from 0.07 and add interest burden to already pressured cash flows.
What we're watching
- How proceeds are used - likely towards working capital or gaming pivot.
- Next quarter's debt/equity and interest coverage ratios.
- Any rating actions or covenant disclosures.
The full read
OnMobile is raising ₹100 crore in NCDs at coupons that scream risk. For a company with a ₹36 crore net loss and 18% revenue decline, 13.60-13.88% interest is expensive credit, likely because traditional lenders are wary. The debt will push debt/equity from near zero to roughly 17% of market cap. The security structure, floating charges plus a pledge of Singapore sub shares, offers some protection. The CFO reappointment is incidental. The real story: the market is now pricing in serious risk for OnMobile's gaming pivot. The open question is whether the proceeds can generate returns above 13.6%.
Questions answered
- What are the coupon rates and terms of the NCDs?
- OnMobile issued ₹100 crore in secured, redeemable NCDs across two tranches: ₹75 crore at 13.60% monthly coupon and ₹25 crore at 13.88% running coupon, both with a three-year maturity.
- Why is the coupon rate so high?
- The high double-digit coupons reflect OnMobile's weak financial profile – trailing revenue declined 18.3%, net profit was negative, and the company is a micro-cap. Lenders are pricing in significant credit risk.
- How does this NCD issuance affect OnMobile's balance sheet?
- The ₹100 crore debt is about 18% of its ₹595 crore market cap. With current debt/equity at just 0.07, this issuance will substantially increase leverage and interest costs, straining cash flows.
- What security is being offered for the NCDs?
- The NCDs are secured by floating charges over OnMobile's assets, and the ₹25 crore tranche also includes a pledge of shares in its Singapore subsidiary.
- Is the CFO reappointment significant?
- Radhika Venugopal's reappointment as whole-time director and CFO for three years is routine and does not materially alter the financial impact of the NCD issuance.
Onmobile Global Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on ONMOBILE →- 24 Jun 2026 · 8:52 PM IST OnMobile raises ₹100 cr via NCDs at steep 13.60-13.88% coupon
- 5d ago OnMobile board to weigh NCD issue on June 24
- 30d ago OnMobile's Q4 transcript confirms nothing new after live call summary.