Sadbhav Engineering Board Approves Preferential Issue of Shares Worth ₹2,044 Crore
Sadbhav Engineering's Board approved a preferential issue of up to 14,47,94,474 equity shares at ₹9.34 each to lenders for ₹1,351.87 crore. It also approved issuing up to 7,55,55,555 shares at ₹9.00 each to promoter Shashin Patel for ₹68 crore. The 37th AGM is scheduled for September 30, 2026.
The preferential issuance of equity shares significantly impacts the company's capital structure, ownership, and financial obligations. The aggregate amount raised is substantial and directly relates to the implementation of a resolution plan, which is a material event for stakeholders.
The preferential issuance of shares to lenders and a promoter member, as part of a resolution plan, indicates a move towards financial restructuring and potential strengthening of the company's balance sheet. The approval of the AGM notice is a routine but necessary corporate action.
Sadbhav Engineering Limited announced the outcome of its Board of Directors meeting held on September 1, 2026. The board approved the issuance of equity shares on a preferential basis as part of its resolution plan.
This includes the issuance of up to 14,47,94,474 equity shares at an issue price of ₹9.34 per share, aggregating up to ₹1,351.87 crore (1351,87,40,044). These shares will be issued 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 issuance is subject to applicable laws, regulatory approvals, and shareholder approval.
Additionally, the company approved the issuance of up to 7,55,55,555 equity shares at an issue price of ₹9.00 per share, aggregating up to ₹68 crore (68,00,00,000), to Mr. Shashin Patel, a member of the promoter group. This issuance is for the conversion of existing unsecured loans and is also subject to necessary approvals.
These issuances are a part of the implementation of the resolution plan approved by lenders under the Reserve Bank of India's framework. The board also approved the notice for the 37th Annual General Meeting (AGM) scheduled to be held on September 30, 2026, at 3:00 PM IST via video conferencing. The trading window for dealing in the company's securities, which was closed from August 27, 2026, will reopen 48 hours after the conclusion of the board meeting.
A plain-language summary of a public exchange filing by Sadbhav Engineering Limited. Read the original for the full detail.