Vardhman Polytex Limited has informed the Exchange regarding Outcome of Board Meeting held on March 19, 2026 regarding Fund raising through NCD and OCD & alteration in AOA and calling of EGM for the same, and further, for sale or disposal of land at Ludhiana Unit and Postal Ballot for the same.
VARDMNPOLY · price
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On the reaction day the stock moved 0.9 pts less than Nifty Microcap 250 and 0.4 pts less than its Other Textile Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Vardhman Polytex's board approved raising up to ₹35 crore through listed, secured Non-Convertible Debentures (NCDs) carrying a steep 18% per annum coupon for a 5-year tenure, to be placed privately via the BSE EBP platform. Separately, the board approved issuing up to ₹25 crore of unlisted, secured Optionally Convertible Debentures (OCDs) at 18% per annum on a preferential basis to a single non-promoter investor, Special Situation India Fund, convertible into equity within 6–15 months or redeemed via bullet payment at 18 months. The board also approved amending the Articles of Association to allow debenture trustees to appoint a board observer, and called an EGM on April 16, 2026, to seek shareholder approval for the OCD issue and AOA change. In parallel, the board gave in-principle approval to sell the land at its closed Ludhiana (Focal Point) unit, which contributed 33.39% (₹95.14 crore) of revenue in the last financial year, with proceeds aimed at repaying lenders and supporting growth.
The 18% coupon on both NCDs and OCDs points to significant financial stress — consistent with the company's reported negative net worth of ₹227.39 crore as of March 2025. Shareholders face likely equity dilution if the ₹25 crore OCDs convert, while the Ludhiana land monetisation is a positive deleveraging step but also signals the company is cashing out a revenue-contributing asset to service debt.