Sadbhav Engineering Approves Debt Resolution Plan, Rs 1000 Crore NCD Issuance
Sadbhav Engineering's Board approved a debt resolution plan and the issuance of up to ₹1,000 Crores in Non-Convertible Debentures (NCDs) on December 17, 2025. The plan includes converting ₹890 Crores of fund-based debt into NCDs and potentially converting interest into equity.
The debt resolution plan and the significant issuance of NCDs will have a material impact on the company's financial structure, debt servicing capabilities, and future operations.
The approval of a debt resolution plan and the issuance of NCDs indicates a proactive step by the company to manage its debt obligations, which is positive for its financial health.
Sadbhav Engineering Limited announced that its Board of Directors, in a meeting held on December 17, 2025, has approved a significant debt resolution plan. This plan is designed to help the company meet its debt service obligations in line with the RBI's Prudential Framework for Resolution of Stressed Assets.
The Board has authorized the execution of a Master Restructuring Agreement and ancillary agreements as part of this plan. A key component of the approved plan is the issuance of rupee-denominated, unlisted, rated, secured, taxable, and redeemable non-convertible debentures (NCDs) amounting up to ₹1,000 Crores. These NCDs will be issued on a private placement basis in one or more tranches.
The restructuring plan involves converting fund-based debt of ₹890 Crores into NCDs: ₹454 Crores (NCD-I) at an IRR of 9% p.a. and ₹436 Crores (NCD-II) at an IRR of 0.01% p.a. Additionally, the Net Present Value (NPV) of interest on NCD-II, calculated at an IRR of 8.99% p.a., is proposed to be converted into equity, subject to regulatory guidelines. Bank guarantees (BGs) issued before the restructuring implementation, up to a cap of ₹100 Crores, will be converted into Fund Based debt (NCD-III) and serviced at an IRR of 9% p.a. Non-fund based debt will be capped at ₹610 Crores.
The company also disclosed that the trading window for dealing in its securities, which was already closed, will reopen 48 hours after the disclosure of this board meeting outcome. The Board meeting commenced at 7:00 PM and concluded at 8:30 PM on December 17, 2025.
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Sadbhav Engineering Limited filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Sadbhav Engineering Limited. Read the original for the full detail.