Vardhman Polytex Limited has informed the Exchange regarding Notice of Extraordinary General Meeting to be held on April 16, 2026
VARDMNPOLY · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Vardhman Polytex has called an EGM on April 16, 2026 to seek shareholder approval for raising up to ₹120 crore through a mix of debt instruments. This includes ₹25 crore of Optionally Convertible Debentures (OCDs) to be issued on a preferential basis to Special Situation India Fund (a fund managed by EAAA India Alternatives), which can be converted into equity shares within 6-15 months, and ₹95 crore of listed, secured, non-convertible debentures (NCDs). The OCDs carry a high interest rate of 18% per annum. Funds will be used for modernization of the Nalagarh plant, capital expenditure, working capital, and general corporate purposes. The notice also proposes altering the Articles of Association to allow debenture trustees to appoint an observer to the Board. Heavy security is being given, including pledge of 100% promoter shares, multiple properties, and personal/corporate guarantees from the promoter group. E-voting cutoff date is April 9, 2026.
This is a significant capital raise that could lead to equity dilution if the OCDs are converted into shares. The 18% coupon rate, pledge of all promoter shares, mention of 'stressed assets,' and appointment of a Board observer suggest the company may be under financial pressure and restructuring its debt. Shareholders should review the security package and potential dilution carefully before voting.