Disclosure under Regulation 30 SEBI (LODR), 2015 - Extension of Redemption Period of Unlisted Preference Shares
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Prima Agro Ltd's board has approved extending the redemption period of its 60 lakh 10% Non-Convertible Redeemable Preference Shares (unlisted) by about 7 years, from 11 April 2026 to 11 April 2033. These shares have a face value of ₹10 each, implying a total outstanding preference share value of ₹6 crore carrying a 10% annual coupon. The company says the deferral is for better cash flow management and to align with long-term business plans. The extension still needs shareholder approval at the next general meeting.
For ordinary equity shareholders, this is largely a neutral-to-slightly-negative signal — the company is pushing out a liability by seven years, which preserves short-term cash but keeps a 10% cost-of-capital obligation on the books longer. The shares in question are unlisted and non-convertible, so they do not dilute equity, but the extension reflects cash flow management rather than a strengthening balance sheet.