Curious case of NuPower Technologies, Deepak Kochhar's money-rotating firm?

The morality and purpose of issuing fully and compulsorily convertible debentures to a former promoter can be questioned, depending on the money trail

Deepak Kochhar-owned NuPower Renewables sold its stake in its subsidiary NuPower Technologies to Anirudh Bhuwalka-promoted AMW Motors’ subsidiary A-One Parts & Services in 2016, only to buy fully convertible debentures in the same firm soon after. 

After Bhuwalka’s purchase of NuPower Technologies, the company subsequently issued fully, compulsorily convertible debentures (FCDs) to NuPower Renewables. An FCD allows investors to provide debt capital, which, after a stipulated period of time, gets converted into equity shares. 

The FCDs were to be converted into equity shares after three years.

NuPower Technologies made four FCD issuances between September and November 2017, totalling Rs 8.26 million to NuPower