Sadbhav Engineering Allots ₹713.25 Crore Non-Convertible Debentures in Two Tranches
Sadbhav Engineering Limited allotted ₹713.25 crore worth of non-convertible debentures in two tranches to existing lenders on March 25, 2026, as part of debt restructuring. NCD-I tranche comprises 36,376 debentures worth ₹363.76 crore with 9% interest maturing in 2031, while NCD-II tranche includes 34,949 debentures worth ₹349.49 crore with 0.01% interest maturing in 2034. Both tranches are secured, unlisted, and issued on private placement basis with structured repayment schedules.
*this image is generated using AI for illustrative purposes only.
Sadbhav Engineering Limited has successfully allotted non-convertible debentures (NCDs) worth ₹713.25 crore to its existing lenders as part of a comprehensive debt restructuring initiative. The Finance and Investment Committee of the company approved this allotment during their meeting held on March 25, 2026.
Debenture Allotment Details
The debenture issuance comprises two distinct tranches, both issued on a private placement basis to existing lenders. The securities are unlisted, secured, taxable, and redeemable non-convertible debentures with a face value of ₹1,00,000 each.
| Parameter: | NCD-I Tranche | NCD-II Tranche |
|---|---|---|
| Number of Debentures: | 36,376 | 34,949 |
| Issue Size: | ₹3,63,76,00,000 | ₹3,49,49,00,000 |
| Face Value: | ₹1,00,000 each | ₹1,00,000 each |
| Allotment Date: | March 25, 2026 | March 25, 2026 |
| Maturity Date: | March 31, 2031 | March 31, 2034 |
| Interest Rate: | 9% per annum | 0.01% per annum |
Interest and Repayment Structure
The NCD-I tranche carries an interest rate of 9% per annum, payable along with principal repayment on respective redemption dates. The repayment follows a structured schedule with the largest portion (45.00%) due in September 2026, followed by graduated payments through March 2031.
NCD-I Repayment Schedule:
| Date: | Repayment Percentage |
|---|---|
| March 31, 2026: | 10.20% |
| September 30, 2026: | 45.00% |
| March 31, 2027: | 0.50% |
| March 31, 2028: | 12.75% |
| March 31, 2029: | 12.75% |
| March 31, 2030: | 12.75% |
| March 31, 2031: | 6.05% |
The NCD-II tranche features a significantly lower interest rate of 0.01% per annum, with an additional provision where 8.99% per annum will be converted into equity shares subject to regulatory guidelines. This tranche has an extended maturity period until March 2034 with a different amortization schedule.
Security and Regulatory Compliance
Both debenture tranches are secured through hypothecation of current and other movable assets (excluding assets exclusively charged to existing lenders) and mortgage of identified fixed assets. The debentures will be held in dematerialized form and are not proposed for listing on any stock exchange.
The allotment has been made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has indicated that redemption will be made out of the company's cash flows, with penal charges applicable in case of default.
Source: None/Company/INE226H01026/fc969471-d929-4864-b44a-d4d248ae8b27.pdf
Historical Stock Returns for Sadbhav Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.98% | +1.37% | +40.27% | -12.77% | -24.40% | -82.83% |
How will Sadbhav Engineering generate sufficient cash flows to meet the large 45% repayment due in September 2026?
What impact will the conversion of 8.99% interest into equity shares have on existing shareholders' ownership dilution?
Will this debt restructuring improve Sadbhav Engineering's credit rating and ability to secure future financing at better terms?
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