Sadbhav Engineering Limited has informed the Exchange regarding allotment of 71325 securities pursuant to Non Convertible Securities at its meeting held on March 25, 2026
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Sadbhav Engineering has allotted 71,325 unlisted, secured NCDs worth about Rs. 713.25 crore to its existing lenders in furtherance of a debt restructuring plan. The first tranche of 36,376 NCDs totals Rs. 363.76 crore at a 9% per annum coupon, maturing on 31 March 2031, with principal repayments spread from March 2026 to March 2031. The second tranche of 34,949 NCDs totals Rs. 349.49 crore at a very low 0.01% per annum coupon, maturing on 31 March 2034, with repayments spread over 8 years. Notably, 8.99% per annum of the second tranche will be converted into equity shares, leading to some dilution. Both tranches are issued at par via private placement and are secured by hypothecation of current/movable assets and mortgage of fixed assets.
This is a balance-sheet restructuring move rather than fresh fundraising, indicating the company is working with lenders to reschedule obligations. The unusually low 0.01% coupon on NCD-II and the partial equity conversion suggest lenders accepted significant concessions, pointing to underlying financial stress. Shareholders should watch for equity dilution from the NCD-II conversion and any further impact on existing debt covenants.