Bajaj Hindusthan Sugar Limited has informed the Exchange regarding Outcome of Board Meeting held on February 12, 2026.
BAJAJHIND · price
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Bajaj Hindusthan Sugar's board approved a debt resolution plan under the RBI Prudential Framework on February 12, 2026. Outstanding Optionally Convertible Debentures (OCDs) of Rs. 3,215.31 crores will continue as debt with a 15-year tenor, 6-year moratorium, and a low 0.20% coupon, with a waiver on further Yield to Maturity (YTM) accrual. The company/promoters must infuse Rs. 1,000 crores in FY25-26, of which Rs. 630.79 crores was already done via a share buyback in June 2025, with Rs. 369.21 crores remaining. Additionally, outstanding YTM of Rs. 2,939.97 crores will be converted into equity shares (Rs. 570.03 crores) and Compulsory Convertible Preference Shares (Rs. 2,855.54 crores total), issued preferentially to a consortium of 12 lenders including SBI, PNB, Canara Bank, Union Bank, and Bank of Baroda. Lenders' shareholding post-conversion is intended to remain below 50%, and the conversion price will be set as per SEBI ICDR regulations by a registered valuer.
This is a significant debt restructuring that reduces the company's interest burden (0.20% coupon, waived YTM) but will lead to substantial equity dilution for existing shareholders as lenders convert debt into shares and CCPS, with lenders potentially holding up to 50% of the company. The preferential issue to lenders signals financial stress resolution but existing shareholders should expect meaningful dilution and likely negative near-term price reaction.