Bhagiradha Chemicals & Industries Limited has informed the Exchange regarding 'Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Authorization for conversion of loans extended to wholly owned subsidiary into equity shares'.
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Bhagiradha Chemicals has approved converting approximately Rs. 368 crore of loans (including accrued interest) extended to its wholly owned subsidiary, Bheema Fine Chemicals Private Limited, into equity shares. The subsidiary, which manufactures and sells agrochemicals and intermediates, reported a turnover of Rs. 17.02 crore in FY25, up from Rs. 0.93 crore in FY24. The move aims to strengthen the subsidiary's balance sheet, reduce its interest burden, and improve its debt-to-equity ratio. The company clarified that no fresh funds are being infused and it will continue to hold 100% in the subsidiary. This is an internal capital restructuring and not an acquisition.
This is a non-cash, intra-group restructuring with no impact on Bhagiradha's consolidated financials or its shareholding pattern in the subsidiary. For shareholders, it signals management's effort to clean up the subsidiary's balance sheet to support its growth, though the subsidiary is still in early stages of revenue generation.