Peninsula Land Completes Full OCD Redemption of ₹150 Crore, Director Steps Down

Peninsula Land Limited has successfully completed the full redemption of its Optionally Convertible Debentures (OCDs), marking a significant milestone in the company's debt management strategy. The real estate developer has now fully redeemed all OCDs worth ₹150.00 crore issued under the OCD Subscription Agreement dated June 24, 2024.

Complete OCD Redemption Achieved

The company announced on December 23, 2025, through its official intimation to stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has completed the redemption of Tranche B OCDs comprising 66,37,168 debentures aggregating to ₹37.50 crore. This follows the earlier redemption of Tranche A OCDs worth ₹112.50 crore, which was completed in December 2025. All obligations related to both tranches have been fulfilled and discharged in accordance with the terms of the OCD Subscription Agreement.

OCD Redemption Summary

Particulars:	Tranche A	Tranche B	Total
Number of OCDs:	1,99,11,504	66,37,168	2,65,48,672
Face Value per OCD:	₹56.50	₹56.50	₹56.50
Total Value:	₹112.50 crore	₹37.50 crore	₹150.00 crore
Redemption Status:	Completed	Completed	Fully Redeemed
Investor:	RE2.0 Residential Opportunities Fund	RE2.0 Residential Opportunities Fund	-

Board Changes Following OCD Redemption

As a direct consequence of the complete OCD redemption, significant changes have occurred in the company's board composition. According to the terms of the OCD Subscription Agreement, RE2.0 Residential Opportunities Fund has ceased to have the right to appoint a Nominee Director on the Board following the full redemption.

Director Cessation Details

Parameter:	Details
Director Name:	Mr. Hrishikesh Parandekar
DIN:	01224244
Cessation Date:	December 23, 2025
Cessation Time:	Close of business hours
Reason:	Full OCD redemption completed

Mr. Hrishikesh Parandekar (DIN: 01224244) ceased to be a Director of the company with effect from December 23, 2025, from the close of business hours. This change was automatic and in accordance with the predetermined terms of the OCD agreement.

Strategic Financial Management

The successful completion of the entire OCD redemption demonstrates Peninsula Land's commitment to effective financial management and debt resolution. The company has fulfilled all its obligations ahead of the January 8, 2026 deadline that was originally set for Tranche B redemption. This proactive approach in managing financial instruments reflects positively on the company's operational efficiency and financial discipline.

The completion of this substantial financial obligation totaling ₹150.00 crore represents a significant step in Peninsula Land's capital structure optimization. With all OCDs now fully redeemed, the company has cleared this major financial commitment, potentially strengthening its balance sheet and providing greater financial flexibility for future operations and growth initiatives.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.20%	-0.89%	-8.24%	-22.11%	-42.59%	+265.52%

Peninsula Land Limited (PLL) has faced a significant setback as CARE Ratings downgraded its long-term bank facilities worth ₹300 crore from CARE BBB- Stable to CARE BB+ Stable. This downgrade comes in the wake of increased delays in lease rental receipts and concerns over the company's upcoming financial obligations.

Key Factors Behind the Downgrade

Delayed Lease Rentals: The company has experienced an increase in the intensity of delays in receiving monthly rentals from its tenants over the last six months.
Upcoming Debt Obligations: PLL faces a substantial financial challenge with the upcoming redemption of ₹150 crore in optionally convertible debentures (OCDs) due in December 2025.
Liquidity Concerns: The downgrade reflects apprehensions about PLL's liquidity position, especially considering the potential impact of the OCD redemption on the company's available liquidity buffer.
Tenant Concentration Risk: The company's revenue stream is heavily dependent on just two government tenants occupying its entire leased property in Mumbai's Parel area.

Financial Performance

A closer look at PLL's financial data reveals some concerning trends:

Metric	FY2025	FY2024	YoY Change
Revenue	₹280.20 cr	₹582.00 cr	-51.86%
Net Profit	-₹36.40 cr	₹128.30 cr	-128.37%
EBITDA	₹35.20 cr	₹138.10 cr	-74.51%
EPS	-₹1.11	₹4.30	-125.81%

The company has experienced a significant decline in revenue and profitability, with net profit turning negative in FY2025.

Debt and Liquidity Position

PLL's debt profile and liquidity position are under pressure:

Overall Gearing: Stood at 2.51x as of September 30, 2025, up from 2.19x on March 31, 2025.
Cash Flow: Operating cash flow turned negative at -₹44.00 crore in FY2025, compared to a positive ₹180.10 crore in FY2024.
Liquidity Buffer: As of September 30, 2025, PLL had free cash and mutual fund investments of approximately ₹30 crore.

Management's Response

The company management has indicated plans to avail an additional top-up loan on the existing lease rental discounting (LRD) term loan to shore up liquidity. However, this move is expected to further moderate the coverage indicators for its LRD loan.

Outlook

While PLL benefits from the strategic location of its leased property in Parel, Mumbai, and has a track record of full occupancy, the company faces significant challenges:

Addressing the delays in rental receipts
Managing the upcoming OCD redemption
Improving its overall financial performance and liquidity position

Investors and stakeholders will be closely watching how PLL navigates these challenges in the coming months, particularly its ability to meet the OCD redemption obligation and stabilize its rental income stream.

The company's future credit rating and financial health will likely depend on its success in these areas, as well as its ability to diversify its tenant base and improve its debt coverage ratios.