Disclosure regarding modification in one of the Financial Covenants of Debenture Trust Deed dated 31st May, 2023 in respect of 8.10% Unsecured Listed Redeemable Non-Convertible Debentures ....
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Aditya Birla Real Estate Ltd has received BSE in-principle approval and executed the First Amendment Deed to modify a financial covenant in its Debenture Trust Deed dated 31 May 2023. The change relates to 40,000 unsecured, listed, redeemable, non-convertible debentures of face value Rs. 1,00,000 each, aggregating Rs. 400 crore (ISIN: INE055A08037). The Net Debt to Equity ratio (consolidated) limit has been relaxed from 'not above 1.10x' to 'not to exceed 1.5x' until 31 March 2026, and further to 1.75x from 1 April 2026 onwards. The amendment was executed with the debenture trustee SBICap Trustee Company Ltd on 9 May 2025.
The relaxation of the debt-to-equity covenant gives the company significantly more room to take on leverage, which may be a mild negative signal for existing debenture holders as it allows higher indebtedness. For shareholders, it suggests the company anticipates needing greater borrowing capacity, though the change still imposes reasonable limits.