Sadbhav Engineering Limited has informed the Exchange about General Updates for Signing Master Restruturing Agreement with majority Consortium Lenders
SADBHAV · price
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Sadbhav Engineering Limited has signed a Master Restructuring Agreement (MRA) on March 25, 2026, with majority consortium lenders including Punjab National Bank, Union Bank of India, Axis Bank, Bank of India, Yes Bank, and an asset reconstruction company. The restructuring covers a total debt of Rs. 1,516.71 Crores, comprising Rs. 906.35 Crores of fund-based exposure and Rs. 610.36 Crores of non-fund-based limits. The fund-based portion will be converted into convertible debentures, with part of the interest component on these debentures further converted into equity. Additionally, the promoter's existing and future debt to the company will be converted into equity as per the plan prepared under RBI's stressed assets restructuring framework.
Existing shareholders will likely face significant equity dilution due to debt-to-equity conversions by both lenders and the promoter. While the restructuring avoids a default or NPA situation and provides stability, it signals prior financial stress, gives lenders nominee director rights, and means no fresh funding — limiting growth capital. Expect heightened volatility and negative near-term sentiment, though long-term survival prospects improve.