Vardhman Polytex Limited has informed the Exchange regarding 'Postal Ballot'. Notice of Postal Ballot will be given in due course.
VARDMNPOLY · price
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Vardhman Polytex's board has approved raising up to ₹35 crore through listed, secured, redeemable Non-Convertible Debentures (NCDs) carrying a high 18% per annum coupon, with monthly interest payments over a 5-year tenure ending March 2031. Separately, the board cleared a preferential issue of up to ₹25 crore in unlisted, secured Optionally Convertible Debentures (OCDs) at 18% compounded interest to Special Situation India Fund, convertible into equity within 6-15 months or redeemed in 18 months. The board also gave in-principle approval to sell the land at its Ludhiana unit, which contributed 33.39% (₹9,514.39 lakh) of revenue, to monetise assets, repay lenders and support growth; the company's net worth is negative at ₹22,739.14 lakh. An EGM is scheduled for April 16, 2026 to seek shareholder approval for the OCD issue and Articles of Association changes, while a Postal Ballot will be held to approve the land sale. The company is also altering its Articles to allow a debenture trustee observer on the board.
For shareholders, this signals a distressed restructuring — the company is shutting a third of its revenue base, borrowing at a very steep 18% cost, and selling land to deleverage. While deleveraging is positive long-term, the high-cost debt and potential equity dilution from OCD conversion into a negative-net-worth company are near-term concerns; stock price may stay weak until asset sale proceeds and turnaround visibility emerge.