Intimation of outcome of Board Meeting held on 14.04.2025
Awaiting price reaction for this filing.
S R Industries Limited (script: SRIND), a company rehabilitated from the Corporate Insolvency Resolution Process (CIRP), held a board meeting on 14 April 2025 and approved the issuance of up to 1,65,00,000 unlisted, unrated Compulsorily Convertible Debentures (CCDs) of face value Rs. 10 each, in one or more tranches, to Bazel International Limited (BIL) on a preferential/private placement basis. The total issue size is up to Rs. 16.50 crore, carrying a token coupon of 0.01%, and the CCDs are convertible into equity shares at Rs. 10 per share within 18 months of allotment. BIL, the successful resolution applicant under the NCLT-approved plan, will see its stake rise from 50.10% (98,56,424 shares) to 72.86% (2,63,56,424 shares) on a notional basis, subject to later realignment to meet minimum public shareholding norms. The funds are meant to be infused as working capital for the company as per the approved resolution plan.
Existing public shareholders will see further dilution as the promoter group's (BIL) stake climbs toward ~73%, though management has indicated the post-issue shareholding is notional and will be realigned to comply with minimum public shareholding rules. The 0.01% coupon and at-par conversion price mean the cost of this funding is very low, but equity shareholders are being diluted via a debt instrument that will convert to shares within 18 months.