Ashima Limited has announced a significant financial move, exercising its call option for the partial early redemption of its unlisted, secured, unrated, redeemable, rupee-denominated non-convertible debentures (NCDs). The company has redeemed a total of ₹24.25 crore from two debenture holders, demonstrating its commitment to managing its debt obligations.

Redemption Details

The partial redemption was executed equally between two debenture holders:

Key Points of the Redemption

• Original Issue: A total of 5,500 NCDs worth ₹55 crore were initially issued to both holders combined, with each NCD having a face value of ₹1 lakh.
• Redemption Method: The redemption was effected by reducing the paid-up value of existing NCDs rather than cancelling them.
• Remaining Balance: After this partial redemption, ₹30.75 crore remains outstanding.
• Redemption Date: The final redemption date is set for on or before October 15, 2025.
• Premium Payment: As per the terms of the NCDs, the premium on redemption, including partial redemptions, will be computed and paid at the end of the NCD tenure.

Implications and Outlook

This strategic move by Ashima Limited showcases the company's proactive approach to debt management. By exercising the call option for partial early redemption, the company is potentially reducing its interest burden while maintaining financial flexibility.

The decision to redeem partially, rather than fully, suggests that Ashima Limited is balancing its debt obligations with its operational cash flow needs. This approach allows the company to reduce its debt while retaining access to the remaining funds until the final maturity date.

Investors and stakeholders may view this partial redemption positively, as it demonstrates the company's ability to meet its financial commitments ahead of schedule. However, it's important to note that the remaining debentures will continue under their original terms, with the final redemption date approaching in October 2025.

Ashima Limited , a company transitioning from textile manufacturing to real estate and investment activities, has reported a loss of Rs 185.00 lakh for the quarter ended June 30. This marks a significant shift from the previous quarter when the company posted a profit of Rs 524.00 lakh.

Financial Performance

The company's total income for the quarter stood at Rs 350.00 lakh, comprising Rs 244.00 lakh from operations and Rs 106.00 lakh from other income. Despite this revenue, Ashima Limited faced a loss before tax of Rs 12.00 lakh from continuing operations.

Segment-wise Performance

The real estate segment emerged as the primary revenue generator, contributing Rs 244.00 lakh with a segment result of Rs 379.00 lakh. Interestingly, while the investment segment did not generate any revenue, it contributed Rs 265.00 lakh to the overall results.

Transition to Real Estate

Ashima Limited's focus on real estate is evident from its significant investment in land development and construction costs, which amounted to Rs 1,822.00 lakh during the quarter. This substantial investment underscores the company's commitment to its new business direction.

Discontinued Operations

The company's discontinued cotton textiles operations showed Rs 29.00 lakh in revenue but resulted in a Rs 73.00 lakh loss, reflecting the challenges in this sector that likely prompted the business transition.

Earnings Per Share

The earnings per share (EPS) for continuing operations stood at Rs (0.10), indicating the impact of the transition on the company's profitability in the short term.

Management's Approval

The Board of Directors of Ashima Limited approved these unaudited financial results in a meeting held on August 12. The meeting, which commenced at 12:06 p.m. and concluded at 12:32 p.m., also considered the Limited Review Report from the statutory auditors, M/s Mukesh M. Shah & Co.

As Ashima Limited navigates its transition from textiles to real estate and investments, investors and stakeholders will be keenly watching how this strategic shift impacts the company's financial performance in the coming quarters.