Bajaj Hindusthan Sugar Limited has informed the Exchange regarding Outcome of Committee Meeting held on April 01, 2026 regarding allotment of 44,56,67,369 Compulsorily Convertible Preference Shares (CCPS) of face value of Rs.1/- each at par on preferential basis on conversion of Loan in accordance with the Framework Agreement executed on March 26, 2026.
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Bajaj Hindusthan Sugar Limited has allotted 44,56,67,369 Series A 0.01% Compulsorily Convertible Preference Shares (CCPS) of face value Rs.1 each at par to Bank of India. The total allotment amounts to Rs.44.57 Crores and was completed through conversion of existing loan as part of the company's Resolution Plan. This preferential allotment to the lender completes the earlier announced debt-to-equity conversion. The CCPS carry a minimal coupon rate of 0.01% and will convert to equity at a later stage.
This represents a significant debt restructuring where Bank of India's loan has been converted to quasi-equity, reducing the company's debt burden. The dilution from such a large number of CCPS could impact existing shareholders when conversion happens.