Setco Automotive Limited has informed the Exchange about General Updates
SETCO · price
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Setco Automotive's material subsidiary, Setco Auto Systems Pvt Ltd (SASPL), has obtained approvals to waive certain costs on its unlisted Non-Convertible Debentures (NCDs) held by India Resurgence Fund (Scheme 1 and Scheme 2). The waiver covers ₹67.0 lakh of Additional Redemption Premium for FY 2025–26 and a much larger ₹125.10 crore of accrued Investor IRR @ 18% per annum across FY 2024–25 and FY 2025–26. The debenture holders and the debenture trustee have agreed to these waivers, with the principal amount and other key terms of the NCDs remaining unchanged. The waivers are conditional on SASPL redeeming the debentures within the stipulated timeline. There is no immediate cash outflow from the waivers themselves, but timely redemption of the underlying NCDs is now a key condition.
This is a meaningful debt restructuring for SASPL, reducing future interest and redemption obligations by over ₹125 crore, but it hinges on the company being able to redeem the NCDs on time. Shareholders should watch for any further updates on the actual redemption of the debentures, as failure to meet the timeline could put these waivers at risk and create pressure on the stock.