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Informist, Thursday, Feb. 12, 2026

 

MUMBAI – Bajaj Hindusthan Sugar Ltd. Thursday approved an issuance of INR 5.70 billion of equity shares on a preferential basis to its lenders as part of a debt resolution plan. It also approved the issuance of INR 28.56 billion of 20-year compulsorily convertible preference shares that will yield 0.01% per annum, payable on a cumulative basis, to repay the accumulated interest on the debt and other claims of lenders on the company. The company will have an option to buy back these preference shares. Together, these constitute the restructuring of INR 34.26 billion of outstanding claims on the company, primarily by way of accrued interest.

 

The shares will be issued to a consortium of 12 lenders, including State Bank of India, Punjab National Bank, Bank of Baroda, and Canara Bank, the company said in an exchange filing.

 

The company said that the tenure of the outstanding optionally convertible debentures principal of INR 32.15 billion will be extended to 15 years and these will pay a coupon of 0.20% per annum, payable annually. There will be a six-year interest moratorium on these debentures starting Apr. 1, 2026, the company said and added that these will be repaid in 10 annual instalments starting Mar. 31, 2031. No further interest will accrue on these debentures, the company said. This outstanding will reduce in the inverse order of maturity when the company sells its non-core assets.

 

As part of the resolution plan, the company and/or the promoters will be required to infuse INR 10 billion in FY26. Of this, INR 6.31 billion has already been infused in June 2025 through a share buyback, which was used to service dues as of Mar. 31, 2025. The remaining INR 3.69 billion will be infused through issuance of tax deducted at source certificates and will be used for interest payments.

 

The balance interest and other dues of INR 23.70 billion and other claims of INR 4.86 billion total INR 28.55 billion, which will be repaid through the compulsorily convertible preference shares, the company said. If the lenders' stake in the company falls below 50%, the convertible preference shares will be converted into equity on a quarterly basis, the company said.

 

For the quarter ended December, Bajaj Hindusthan Sugar reported a consolidated net profit of INR 147.5 million on a revenue of INR 13.8 billion. Following the announcement of results Thursday, shares of the company closed at INR 17.37 on the National Stock Exchange, up over 1% from the previous session.  End

 

Reported by Diksha Tripathy

Edited by Ashish Shirke

 

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