Optimal debt-equity mix, preference share structuring, ECB advisory, and hybrid securities — designed to minimize WACC and maximize financial flexibility.
Capital structuring is the strategic design of a company's financing mix — debt, equity, and hybrid instruments — to minimize the cost of capital, optimize tax shields, and maintain financial flexibility. In India, this is governed by the Companies Act, FEMA, RBI ECB norms, and SEBI regulations.
An inefficient capital structure increases WACC, reduces valuation, and can trigger regulatory non-compliance (e.g., thin capitalization, ECB end-use violations). Conversely, optimal structuring unlocks tax shields, improves credit ratings, and preserves founder control.
SilverSiX designs capital structures that balance regulatory compliance with financial optimization — from seed-stage convertible notes to large-ticket ECB and FCCB issuances.
Analysis of optimal leverage considering tax shields, interest coverage, and regulatory thin-cap rules.
Design of preference shares with optimal dividend rates, conversion terms, and redemption schedules.
External Commercial Borrowings under the automatic and approval routes with end-use compliance.
Foreign Currency Convertible Bonds and quasi-equity instruments for listed and unlisted companies.
Optimization of short-term funding through trade credit, bill discounting, and supply chain finance.
Complete RBI, SEBI, and ROC filings for all capital instruments and borrowings.
Analysis of current capital structure, debt capacity, and funding requirements.
Recommending optimal mix of equity, debt, and hybrid instruments based on cost, control, and compliance.
Identifying applicable RBI, SEBI, FEMA, and Companies Act requirements for each instrument.
Preparation of term sheets, offer documents, and security agreements.
Liaison with RBI, SEBI, AD Bank, and ROC for approvals and registrations.
Fund drawdown, end-use monitoring, and ongoing regulatory reporting.
| Deliverable | Description | Timeline |
|---|---|---|
| Capital Structure Memo | Optimal debt-equity mix & instrument recommendation | Week 2 |
| WACC Model | Weighted average cost of capital computation | Week 2 |
| Regulatory Checklist | RBI, SEBI, FEMA & ROC compliance roadmap | Week 3 |
| Term Sheet | Instrument-specific terms (ECB, FCCB, preference) | Week 3 |
| Valuation Report | Fair value for convertible instrument pricing | Week 4 |
| Security Documents | Charge creation, mortgage, and guarantee docs | Week 5 |
| RBI Filing | ECB registration / FCCB approval application | Week 5–7 |
| Compliance Calendar | Ongoing reporting deadlines & end-use tracking | Week 6 |
Book a confidential discovery call with our advisory team. We assess your situation and outline a clear execution roadmap within 48 hours.
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