Sadbhav Engineering Board Approves Preferential Issue of Shares Worth ₹1,000 Crore
Sadbhav Engineering's Board approved a preferential issue of up to 14,47,94,474 equity shares at ₹9.34 each to lenders, raising ₹135.10 crore. It also approved issuing 7,55,55,555 shares at ₹9.00 each to promoter group member Mr. Shashin Patel to convert ₹68 crore in loans. The 37th AGM is scheduled for September 30, 2026.
The preferential issuance of shares and conversion of debt significantly impacts the company's capital structure and financial health as part of a broader restructuring plan.
The preferential issuance of equity shares to lenders and a promoter group member, along with the conversion of loans, is a positive step towards implementing the company's resolution plan and restructuring its obligations.
Sadbhav Engineering Limited announced that its Board of Directors, in a meeting held on September 1, 2026, approved the issuance of equity shares on a preferential basis. This includes the issuance of up to 14,47,94,474 equity shares at an issue price of ₹9.34 per share to various lenders, including Axis Bank Limited, Bank of India, ICICI Bank Limited, IDBI Bank Limited, Karur Vysya Bank, Punjab National Bank, State Bank of India, and Union Bank of India. The total amount to be raised from this issuance is approximately ₹135.10 crore (Rupees One hundred thirty five crore and ten lakhs).
Additionally, the Board approved the issuance of up to 7,55,55,555 equity shares at an issue price of ₹9.00 per share to Mr. Shashin Patel, a member of the promoter group. This issuance will convert an existing unsecured loan of ₹68 crore (Rupees Sixty Eight Crores).
These issuances are part of the implementation of a resolution plan approved by lenders under the Reserve Bank of India's framework, documented in the Master Restructuring Agreement (MRA) and associated Deeds of Accession. The approvals are subject to applicable laws and receipt of necessary statutory, regulatory, and shareholder approvals.
Furthermore, the Board approved the notice for the 37th Annual General Meeting (AGM) of the Company, scheduled to be held on September 30, 2026, at 3:00 PM IST through video conferencing. The Board meeting commenced at 8:30 PM and concluded at 9:30 PM IST.
A plain-language summary of a public exchange filing by Sadbhav Engineering Limited. Read the original for the full detail.