Vardhman Polytex Limited has been subject to a significant encumbrance creation by Catalyst Trusteeship Limited, as disclosed under Regulation 29(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure, dated April 09, 2026, reveals substantial pledging arrangements involving the company's equity shares.

Encumbrance Details

The encumbrance creation involves a substantial portion of Vardhman Polytex Limited's equity shares. Catalyst Trusteeship Limited, acting as debenture trustee on behalf of debenture holders, has secured encumbrance over a significant shareholding.

Share Capital Structure

Vardhman Polytex Limited's share capital structure remains unchanged following the encumbrance creation. The company maintains its existing equity base while accommodating the security arrangements.

Debenture Trust Arrangement

The encumbrance stems from a debenture trust deed executed on March 29, 2026, between Vardhman Polytex Limited and Catalyst Trusteeship Limited. Under this arrangement, the promoter group has pledged their entire shareholding in favor of the debenture trustee.

Key aspects of the arrangement include:

• Effective Date: April 07, 2026
• Mode of Acquisition: Pledge/non-disposal undertaking over promoter shareholding
• Trustee Role: Catalyst Trusteeship Limited acting for debenture holders
• Security Coverage: Entire promoter group shareholding

Regulatory Compliance

The disclosure fulfills the mandatory requirements under SEBI SAST Regulations for substantial acquisitions and encumbrance creation. Catalyst Trusteeship Limited, as the acquirer in trustee capacity, does not belong to the promoter or promoter group of Vardhman Polytex Limited.

The company's shares continue to be listed on both BSE Limited and National Stock Exchange of India Limited, with the encumbrance arrangement providing security to debenture holders while maintaining the existing shareholding structure of the target company.

Vardhman Polytex Limited has announced the successful completion of full settlement of its outstanding dues with Phoenix ARC Private Limited, marking a significant financial milestone for the company. The repayment was executed using proceeds from Non-Convertible Debentures issued by the company.

Settlement Details and Financial Impact

The company has informed stock exchanges that the settlement resolves the earlier default that was being reported on a quarterly basis in compliance with SEBI LODR provisions. This repayment represents a complete resolution of the outstanding obligations with Phoenix ARC Private Limited.

Regulatory Compliance and Reporting

The settlement was announced pursuant to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had been reporting the default status to stock exchanges on a quarterly basis as required under SEBI LODR compliance framework.

Financial Write-back Benefits

A significant outcome of this settlement is the write-back of approximately Rs.300.00 crore pertaining to previous debt settlement liabilities. This substantial write-back amount is expected to have a positive impact on the company's financial position and balance sheet.

Corporate Communication

The announcement was signed by Ajay K. Ratra, Company Secretary of Vardhman Polytex Limited, and communicated to both the National Stock Exchange of India Limited and BSE Limited as per regulatory requirements. The settlement marks the complete resolution of the outstanding dues and cures the previously reported default status.